Skip navigation

Working Paper

Financial Channels, Property Rights, and Poverty : A Sub-Saharan African Perspective

CREDIT MARKETS DEPOSIT FINANCIAL SERVICES ECONOMIC GROWTH DEPOSITS BROAD MONEY LEGAL ENVIRONMENT DEFAULTS DEBTORS INTEREST INTEREST RATE PROPERTY RIGHTS PRIVATE CREDIT EXCHANGE BANKING SYSTEM POOL OF BORROWERS LIQUIDITY DEVELOPING COUNTRIES ENTREPRENEURS POLITICAL ECONOMY DEPOSIT MONEY BANKS ACCESS TO SAVING LOAN DURABLE ASSETS BORROWERS PRIVATE PROPERTY PROBABILITY OF REPAYMENT DUMMY VARIABLE SAVING CENTRAL BANKS CREDITORS INFLATION INTERNATIONAL BANK CREDITOR INSTRUMENTS INTEREST RATES ON LOANS LEGAL SYSTEMS ALLOCATION OF CAPITAL FINANCIAL INSTITUTION COMMERCIAL BANK CONTRACT ENFORCEMENT RISK DIVERSIFICATION BANK ASSETS CONTRACTS INCOME INEQUALITY INTEREST RATES MONETARY FUND FINANCIAL INSTITUTIONS MARKETS MORAL SUASION RETURN INFLATION RATE CREDITOR RIGHTS COMMERCIAL BANK ASSETS LENDERS LOANS RISK SHARING INFORMATION ON BORROWERS BANK CREDIT GROSS DOMESTIC PRODUCT RULE OF LAW FINANCIAL SYSTEM FINANCE BANK POLICY INFORMATION ASYMMETRY TRANSACTIONS MACROECONOMIC ENVIRONMENT INVESTORS HUMAN CAPITAL PROPERTY RIGHT CREDIT CONSTRAINTS GOOD CAPITAL INTERNATIONAL FINANCIAL STATISTICS TRANSPARENCY FINANCIAL STABILITY LACK OF ACCESS LLC FUTURE ACCESS TO FINANCE BANK CREDIT INCOME VARIABILITY MARKET CONSTRAINTS CONTRACT PRICE STABILITY REPAYMENT PROPERTY AMOUNT OF CREDIT INCOME INEQUALITIES FLOW OF CREDIT BALANCE SHEET MARKET DEFAULT FIXED EFFECT MODELS TRADE LIBERALIZATION EXPROPRIATION ECONOMIC DEVELOPMENT ECONOMIC OPPORTUNITIES FINANCIAL DEVELOPMENT DURABLE INVESTMENT EXTREME POVERTY LEGAL PROTECTION DOMESTIC CREDIT COMMERCIAL BANKS SHARE CREDIT RATIONING HOUSEHOLDS COLLATERAL POVERTY RIGHTS OF CREDITORS FINANCIAL MARKETS EARNINGS PROFIT LEGAL RIGHTS OF CREDITORS FINANCIAL STRUCTURE GREATER ACCESS INVESTMENTS LENDING CONSUMER PRICE INDEX CHILD LABOR CREDIT GROWTH MACROECONOMIC POLICIES INSTRUMENT FIXED COST MICRO DATA REMITTANCES BANK BRANCHES LABOR MARKETS LIABILITIES COMMON LAW LEGAL RIGHTS FINANCIAL SECTOR DEVELOPMENT CREDIT MARKET INEQUALITY
70
0

Attachments [ 0 ]

There are no files associated with this item.

More Details

World Bank, Washington, DC
Africa | Haiti
2016-03-08T23:23:56Z | 2016-03-08T23:23:56Z | 2016-02

Studies on the link between financial development and poverty have been inconclusive. Some claim that deeper financial sectors should improve the allocation of capital by allowing entrepreneurs greater access to finance, which should particularly favor the poor. Others argue that improvements in the financial system primarily benefit the rich and politically connected. The literature has also been ambiguous about the channels through which finance may be associated with lower poverty (deposits versus credit). Looking at a sample of 37 countries in Sub-Saharan Africa from 1992 through 2006, the paper suggests that financial deepening is associated with lower poverty through different channels depending on the strength of property rights. In the absence of well-defined and enforced property rights, wider access to saving and risk-sharing instruments is accompanied by a reduction in poverty. Only once property rights grow stronger is credit associated with lower poverty.

Comments

(Leave your comments here about this item.)

Item Analytics

Select desired time period