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Microfinance and Poverty -A Macro Perspective

Author

Listed:
  • Katsushi S. Imai

    (Economics, School of Social Sciences, University of Manchester (UK) and RIEB, Kobe University (Japan))

  • Raghav Gaiha

    (Massachusetts Institute of Technology (USA) and Faculty of Management Studies, University of Delhi (India))

  • Ganesh Thapa

    (International Fund for Agricultural Development, Italy)

  • Samuel Kobina Annim

    (Economics, School of Social Sciences, University of Manchester, UK)

Abstract

Building on the recent literature on finance, growth and hunger, we have examined the experience of Asian countries over the last five decades, using dynamic panel models. Although the results are mixed, depending on the specification and variables used, there is some evidence favouring a positive role of finance in growth of GDP and agricultural value added. While financial development reduces income inequality, the effects on hunger are not so robust. Although microfinance has considerable potential for ameliorating deprivation, the contraction of credit and risk aversion of investors, together with a faltering global recovery, underlie gloomy prospects for the poor in Asia.

Suggested Citation

  • Katsushi S. Imai & Raghav Gaiha & Ganesh Thapa & Samuel Kobina Annim, 2010. "Microfinance and Poverty -A Macro Perspective," Discussion Paper Series DP2010-33, Research Institute for Economics & Business Administration, Kobe University.
    • Handle: RePEc:kob:dpaper:dp2010-33
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Finance; Economic Development; Agriculture; Inequality; Poverty; Asia;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • G01 - Financial Economics - - General - - - Financial Crises
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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