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Pauvreté et microfinance dans l’espace de la cedeao: un cluster macroéconomique appliqué
[Poverty and microfinance in the ecowas region: an applied macroeconomic cluster]

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  • Dioum, Sokhna Bousso

Abstract

Problems of access to finance in developing countries can be decisive in generating poverty traps and persistent income inequalities. Unlike traditional finance which excluded vulnerable populations from participating in financial activities, microfinance institutions have made it easier for the poor to access financial services. This study applies the quantile technique on panel data to assess the macroeconomic effects of microfinance services on poverty in West African countries. Over the period [2000 – 2019], our estimation results reveal that the performance of microfinance institutions reduces on the one hand the number of people living below the national poverty line and accelerates the increase in the rate of economic growth, on the other hand. In other words, microfinance institutions remain the appropriate tools to significantly combat poverty and raise the level of economic development in West African countries. Also, a regularization mechanism must be developed in the Community in order to minimize income inequality which is a potential source of increasing poverty.

Suggested Citation

  • Dioum, Sokhna Bousso, 2024. "Pauvreté et microfinance dans l’espace de la cedeao: un cluster macroéconomique appliqué [Poverty and microfinance in the ecowas region: an applied macroeconomic cluster]," MPRA Paper 121580, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:121580
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    References listed on IDEAS

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    More about this item

    Keywords

    Poverty; Microfinance institution; Economic development; Income inequality;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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