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Journal ArticleDOI

Financial inclusion and stability in MENA: Evidence from poverty and inequality

01 Sep 2017-Finance Research Letters (Elsevier)-Vol. 24, pp 230-237
TL;DR: In this paper, the impact of financial inclusion on income inequality, poverty, and financial stability in eight MENA countries over the period 2002-2015 is investigated. And the empirical evidence indicates that while financial integration is a contributing factor to financial instability in MENA, financial inclusion contributes positively to financial stability.
About: This article is published in Finance Research Letters.The article was published on 2017-09-01. It has received 223 citations till now. The article focuses on the topics: Financial inclusion & Financial integration.
Citations
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Journal ArticleDOI
TL;DR: In this article, the authors examined the trend of financial inclusion in Asia and its impact on financial efficiency and financial sustainability and found that growing financial inclusion negatively affects financial efficiency while favourably influences financial sustainability.

149 citations

Journal ArticleDOI
TL;DR: Although theory suggests that financial market imperfections, such as information asymmetries, market segmentation and transaction costs, prevent poor people from escaping poverty by limiting the ability to escape poverty as discussed by the authors.
Abstract: Although theory suggests that financial market imperfections – mainly information asymmetries, market segmentation and transaction costs – prevent poor people from escaping poverty by limiting thei...

142 citations


Cites background or methods from "Financial inclusion and stability i..."

  • ...Increased financial inclusion appears to be associated with reduced income inequality in the Middle East and North Africa (e.g. Neaime and Gaysset 2018) but not in parts of Asia (Park andMercado 2018), Sub-SaharanAfrica (Tita andAziakpono 2017), or Latin America (e.g. Dabla-Norris et al. 2015a)....

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  • ...These variables are: GDP per capita growth (Beck, Demirgüç-Kunt, and Levine 2007; Neaime and Gaysset 2018; Park and Mercado 2018; Lacalle-Calderon et al. 2019); trade openness (Beck, Demirgüç-Kunt, and Levine 2007; Jaumotte, Lall, and Papageorgiou 2013; Hermes 2014;Dabla-Norris et al. 2015c; Aslan…...

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  • ...…of control variables that are commonly used in the recent finance-inequality and technology-inequality literature (e.g. Beck, Demirgüç-Kunt, and Levine 2007; Jaumotte, Lall, and Papageorgiou 2013; Dabla-Norris et al. 2015c; Neaime and Gaysset 2018; Park and Mercado 2018; Asongu and Odhiambo 2019)....

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  • ...…inequality-reducing impact of education is mixed and seems to depend on the evolution of rates of return to education i.e. the skill premium (e.g. Beck, Demirgüç-Kunt, and Levine 2007; Jaumotte, Lall, and Papageorgiou 2013; Dabla-Norris et al. 2015c; Neaime and Gaysset 2018; Park and Mercado 2018)....

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  • ...…2018; Turégano andHerrero 2018; LacalleCalderon et al. 2019); inflation (Beck, Demirgüç-Kunt, and Levine 2007; Hermes 2014; Aslan et al. 2017; Neaime and Gaysset 2018; Park and Mercado 2018; Lacalle-Calderon et al. 2019); government spending (Dabla-Norris et al. 2015c; Turégano and Herrero…...

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Posted Content
TL;DR: In this paper, the authors provide a comprehensive review of the recent evidence on financial inclusion from all regions of the World and identify the emerging themes in the financial inclusion literature as well as some controversy in policy circles regarding financial inclusion.
Abstract: This paper provides a comprehensive review of the recent evidence on financial inclusion from all regions of the World. It identifies the emerging themes in the financial inclusion literature as well as some controversy in policy circles regarding financial inclusion. In particular, I draw attention to some issues such as optimal financial inclusion, extreme financial inclusion, how financial inclusion can transmit systemic risk to the formal financial sector, and whether financial inclusion and exclusion are pro-cyclical with changes in the economic cycle. The key findings in this review indicate that financial inclusion affects, and is influenced by, the level of financial innovation, poverty levels, the stability of the financial sector, the state of the economy, financial literacy, and regulatory frameworks which differ across countries. Finally, the issues discussed in this paper opens up several avenues for future research

124 citations


Cites background from "Financial inclusion and stability i..."

  • ...Much of this literature contain little empirical evidence (see Morgan & Pontines, 2014; Neaime & Gaysset, 2018), and the relationship between financial inclusion and stability is rather mixed, and the channel through which financial inclusion affects financial stability is still unclear in the…...

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  • ...Neaime and Gaysset (2018) examine how financial inclusion affects poverty levels and income inequality in eight MENA countries over the 2002 to 2015....

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  • ...…in many societies (Bold, Porteous, & Rotman, 2012); thirdly, financial inclusion can help in reducing poverty levels to a desired minimum (Chibba, 2009; Neaime & Gaysset, 2018), and lastly, financial inclusion brings other socio-economic benefits (Kpodar & Andrianaivo, 2011; Sarma & Pais, 2011)....

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  • ...There is a literature that examine the relationship between financial inclusion and financial stability (Cull et al., 2012; Hannig & Jansen, 2010; Neaime & Gaysset, 2018; Ozili, 2018)....

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Posted Content
TL;DR: In this article, the authors assess the role of financial development on income inequality in a panel of 48 African countries for the period 1996 to 2014 and find that with the exception of financial stability, access to credit (or financial activity) and intermediation efficiency, financial sector development indicators have favorable income redistributive effects.
Abstract: The study assesses the role of financial development on income inequality in a panel of 48 African countries for the period 1996 to 2014. Financial development is defined in terms of depth (money supply and liquid liabilities), efficiency (from banking and financial system perspectives), activity (at banking and financial system levels) and stability while, three indicators of inequality are used, namely, the: Gini coefficient, Atkinson index and Palma ratio. The empirical evidence is based on Generalised Method of Moments. When financial sector development indicators are used exclusively as strictly exogenous variables in the identification process, it is broadly established that with the exception of financial stability, access to credit (or financial activity) and intermediation efficiency have favourable income redistributive effects. The findings are robust to the: control for unobserved heterogeneity in terms of time effects and inclusion of time invariant variables as strictly exogenous variables in the identification process. The findings are also robust to the Kuznets hypothesis: a humped shaped nexus between increasing GDP per capita and inequality. Policy implications are discussed.

120 citations

Journal ArticleDOI
TL;DR: In this article, the authors assess the role of financial development on income inequality in a panel of 48 African countries for the period 1996 to 2014, using the Generalised Method of Moments (GMM) to identify time-invariant variables as strictly exogenous variables in the identification process.

113 citations

References
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6,503 citations

Journal ArticleDOI
TL;DR: In this article, the authors consider estimation and testing of vector autoregressio n coefficients in panel data, and apply the techniques to analyze the dynamic relationships between wages an d hours worked in two samples of American males.
Abstract: This paper considers estimation and testing of vector autoregressio n coefficients in panel data, and applies the techniques to analyze the dynamic relationships between wages an d hours worked in two samples of American males. The model allows for nonstationary individual effects and is estimated by applying instrumental variables to the quasi-differenced autoregressive equations. The empirical results suggest the absence of lagged hours in the wage forecasting equation. The results also show that lagged hours is important in the hours equation. Copyright 1988 by The Econometric Society.

3,736 citations