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

Resumen:

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.

Resumen divulgativo:

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.

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

Índice de impacto JCR y cuartil WoS: 5,200 - Q1 (2022)

Referencia DOI: https://doi.org/10.1016/j.bir.2021.03.006

Publicado en papel: Enero 2022.

Publicado on-line: Marzo 2021.

Cita:
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, Enero 2022. [Online: Marzo 2021]