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Paper information

Institutional quality and the financial inclusion-poverty alleviation link: Empirical evidence across countries

E. Aracil, G. Gomez-Bengoechea, O. Moreno-de-Tejada

Borsa Istanbul Review Vol. 22, nº. 1, pp. 179 - 188

Summary:

Institutional quality in the form of extractive or inclusive institutions influences economic outcomes. We examine the positive moderating effect of institutional quality on the relationship between financial inclusion and poverty alleviation over a sample of seventy-five developing and developed countries (2004–2017). We use six different financial inclusion measures together with an informal political institution variable, applying both cross-section and quantile analysis. We find that institutional quality intensifies the beneficial effects of financial inclusion on poverty rates. This effect is more pronounced in poorer economies than in wealthier ones. Our findings yield implications for policy makers seeking to tackle the institutional causes of poverty.


Spanish layman's summary:

La calidad institucional refuerza el efecto positivo de la inclusión financiera en el alivio de la pobreza, según indican nuestros resultados sobre una amplia muestra de países desarrollados y en desarrollo. Este efecto es más pronunciado en las economías más pobres que en las más ricas.


English layman's summary:

Institutional quality reinforces the beneficial effect of financial inclusion on poverty alleviation, as found over a large sample of developed and developing countries. This effect is more pronounced in poorer economies than in wealthier ones.  


Keywords: Control of corruption; Cross-country; Financial inclusion; Institutional quality; Poverty


JCR Impact Factor and WoS quartile: 4.288 - Q1 (2021)

DOI reference: DOI icon 10.1016/j.bir.2021.03.006

Published on paper: January 2022.

Published on-line: March 2021.



Citation:
E. Aracil, G. Gomez-Bengoechea, O. Moreno-de-Tejada. Institutional quality and the financial inclusion-poverty alleviation link: Empirical evidence across countries. Borsa Istanbul Review. Vol. 22, nº. 1, pp. 179 - 188, January 2022. [Online: March 2021]