Theoretical and Applied Economics
No. 3 / 2018 (616), Autumn
Financial sector development and the poor in developing countries: revisiting the access to finance channel
SRM Institute of Science & Technology, Chennai, India
Joysankar BHATTACHARYA
Indian Institute of Management Indore, Indore, India
Abstract. With the help of thorough literature survey, the present study proposes that formal financial services by commercial banks in the developing countries are primarily suitable for the non-poor population and hence acts as a medium-direct channel of financial development to affect the poor whereas the semi-formal financial services by microfinance institutions specifically target the poor in developing countries and thus act as a direct channel. The paper also documents the divergent outcomes of lending through MFIs on the poor in rural areas and explains the coexistence of formal/semi-formal and informal financial markets. The paper further suggests that the future research in the area of finance-poor nexus may focus on providing comparative empirical evidence with respect to the effect of formal, semi-formal and informal finance on the poor in developing countries including the South Asian region. The result of such comparative studies would be of interest to all the key stakeholders in the development finance arena.
Contents
Private brand – differentiating concept and source of stimulation of the Romanian retail trade
Macroeconomic determinants of the labour share of income: Evidence from OECD economies
Analysis of the investments made on the Romanian capital market by the privately managed pension funds – Pillar II
Exchange rate pass-through to macroeconomic indicators using Vector Auto Regression: Empirical evidence from Pakistan
Analysis of the educational activity in Romania
Macroeconomic variables and stock prices in emerging economies: A panel analysis
Consumerism and exclusion in a throw-away culture
The effects of microeconomic factors on the stock market: A panel for the stock exchange in Istanbul ARDL analysis
Return, shock and volatility spillovers between the bond markets of Turkey and developed countries
Causal relationship between internet use and economic development for selected Central Asian economies
Financial sector development and the poor in developing countries: revisiting the access to finance channel
Impact of unbalanced economic growth to dynamic trade specialization
Base erosion and profit shifting in multinational corporations