Financial Inclusion, Financial Development and Poverty Nexus in Developing Nations
DOI:
https://doi.org/10.61506/01.00550Keywords:
Poverty headcount ratio, Financial Inclusion, Financial Development, GDP Per Capita, Inflation, Trade, Gini Index, Secondary School EnrollmentAbstract
The main purpose of this study is to analyze the effect of financial inclusion and financial development on poverty in developing countries. It examines whether financial inclusion and financial development have a positive or negative impact on poverty in developing countries. To analyze the effects of financial inclusion and financial development on poverty the Method of Moments of Quantile Regression (MMQR) technique is used for an unbalanced panel data of 134 developing nations. The results suggest that financial inclusion and financial development have a negative and significant impact on poverty in developing countries. As the financial sector develops it will improve the accessibility of financial assets to poor and financial usage, quality and access to improve the financial conditions in developing countries. The government should promote financial inclusion by providing greater accessibility, better quality and awareness of its usage to reduce the poverty in developing countries. policymakers should improve the financial development by providing greater accessibility of financial institutions, improve the financial stability, provides more efficiency of financial institutions and enhance the financial depth. planners should implement such policies that will increase the GDP per capita in developing countries hence poverty will be reduced. The government and central bank should implement such fiscal and monetary policies that improve the price stability or reduce inflation to reduce the poverty in developing countries. Government should encourage trade to reduce the poverty in developing countries. policymakers should implement such policies that reduce the income inequality in order to reduce the poverty in developing countries. This study differs from past studies as this study analyzes the impact of financial inclusion and financial development on poverty in developing countries from 2011 to 2021 by using the financial development index and financial inclusion index and also using the MMQR technique for panel data estimation.
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