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Financial Development, Inequality and Poverty: Some International Evidence
Report

Financial Development, Inequality and Poverty: Some International Evidence

IMF, 2016

áudio gerado automaticamente
áudio gerado automaticamente

Editorial Rating

8

Qualities

  • Innovative

Recommendation

In theory, the principal purpose of the financial sector is to allocate capital efficiently. So it would seem intuitive that a bigger financial sector would allocate capital better and support more growth. Studies have tended to bolster this idea, but in such a heterogeneous area as finance, it is reasonable to wonder if all activities are equally useful to society. In this innovative research, economists Sami Ben Naceur and RuiXin Zhang gauge financial development’s impacts on poverty and inequity. getAbstract suggests this scholarly text to economists and policy makers.

Take-Aways

  • A large body of research reveals a link between countries’ financial development and their economic growth, but much less study has gone into examining a nation’s financial advances in relation to its income distribution.
  • A recent analysis measures the different impacts on poverty and inequality of access, depth, efficiency, stability and liberalization in banking and capital markets.
  • All aspects of financial development – except one, liberalization – reduce inequity and need.

About the Authors

Sami Ben Naceur is an economist at the International Monetary Fund, where RuiXin Zhang was an intern.


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