Cover IMF Working Papers
Buy Book in Print
Financial Deepening, Property Rights and Poverty: Evidence From Sub-Saharan Africa
Author:
Mr. Yifei Huang null

Search for other papers by Mr. Yifei Huang in
Current site
Google Scholar Close
and
Mr. Raju J Singh
Search for other papers by Mr. Raju J Singh in
Current site
Google Scholar Close
Series:
IMF Working Papers
Volume/Issue:
Volume 2011: Issue 196
Language:
English
Publication Date:
01 Aug 2011
DOI:
https://doi.org/10.5089/9781462305230.001
ISBN:
9781462305230
ISSN:
1018-5941
Pages:
31
Keywords:
WP; Gini coefficient; GDP; financial development; poverty alleviation; income distribution; Africa; poverty gap; poverty indicator; dependent variable; allocation mechanism; decrease poverty; absolute value; positive correlation; Financial sector development; Credit; Income inequality; Sub-Saharan Africa
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
Download PDF (285.6 KB) Download Epub
Recent studies on the relationship between financial development and poverty have been inconclusive. Some claim that, by allowing more entrepreneurs to obtain financing, financial development improves the allocation of capital, which has a particularly large impact on the poor. Others argue that it is primarily the rich and politically connected who benefit from improvements in the financial system. This paper looks at a sample of 37 countries in sub-Saharan Africa from 1992 through 2006. Its results suggest that financial deepening could narrow income inequality and reduce poverty, and that stronger property rights reinforce these effects. Interest rate and lending liberalization alone could, however, be detrimental to the poor if not accompanied by institutional reforms, in particular stronger property rights and wider access to creditor information.
  • Collapse
  • Expand
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund