Financial development and poverty reduction nexus: A cointegration and causality analysis in Bangladesh
2014 (English)In: Economic Modelling, ISSN 0264-9993, E-ISSN 1873-6122, Vol. 36, 405-412 p.Article in journal (Refereed) Published
This paper contributes to the literature by investigating the relationship between financial development, economic growth and poverty reduction in Bangladesh using quarter frequency data over the period of 1975-2011. This issue is of importance for developing economics given the role of financial sector in mobilizing and allocating savings into productive investments. We use an innovative empirical approach based on ARDL cointegration with structural breaks. Our findings show that a long-run relationship between financial development, economic growth and poverty reduction exists in Bangladesh. Financial development helps to reduce poverty, but its effect is not linear.
Place, publisher, year, edition, pages
Elsevier , 2014. Vol. 36, 405-412 p.
Financial development; Economic growth; Poverty
Engineering and Technology
IdentifiersURN: urn:nbn:se:liu:diva-104291DOI: 10.1016/j.econmod.2013.09.049ISI: 000329887800049OAI: oai:DiVA.org:liu-104291DiVA: diva2:697184