<abstract xmlns="http://www.w3.org/1999/xhtml"><p>This study aims to analyze the effect of financial deepening on economic growth, income inequality, and poverty rates in 73 countries during the period 1991–2015. Panel data regression and the interaction of dummy variables are used to measure the effect. The results indicate that financial deepening has positive effects on economic growth, but negative effects on income inequality and poverty rates; has significant effect on economic growth in advanced economies (AEs) and significant effect on income equality and poverty rates in emerging markets and developing economies (EMDEs). These findings show that countries have to be selective in developing their financial sectors as it either can have positive or negative effect.</p></abstract>

This study aims to analyze the effect of financial deepening on economic growth, income inequality, and poverty rates in 73 countries during the period 1991–2015. Panel data regression and the interaction of dummy variables are used to measure the effect. The results indicate that financial deepening has positive effects on economic growth, but negative effects on income inequality and poverty rates; has significant effect on economic growth in advanced economies (AEs) and significant effect on income equality and poverty rates in emerging markets and developing economies (EMDEs). These findings show that countries have to be selective in developing their financial sectors as it either can have positive or negative effect.

The Effect of Financial Deepening on Economic Growth, Inequality, and Poverty: Evidence from 73 Countries

South East European Journal of Economics and Business

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

This study aims to analyze the effect of financial deepening on economic growth, income inequality, and poverty rates in 73 countries during the period...

The Effect of Financial Deepening on Economic Growth, Inequality, and Poverty: Evidence from 73 Countries

Published Online: Dec 31, 2020

Page range: 15 - 27

DOI: https://doi.org/10.2478/jeb-2020-0012

Keywords
financial deepening, income inequality, poverty, panel data

© 2020 Catur Sugiyanto et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

The Effect of Financial Deepening on Economic Growth, Inequality, and Poverty: Evidence from 73 Countries

Published Online: Dec 31, 2020

Page range: 15 - 27

DOI: https://doi.org/10.2478/jeb-2020-0012

Keywordsfinancial deepening, income inequality, poverty, panel data

© 2020 Catur Sugiyanto et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Keywords
financial deepening, income inequality, poverty, panel data