1. The path to shared prosperity: Leveraging financial services outreach to create decent jobs in developing countries
- Author
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Aïssata Coulibaly, Urbain Thierry Yogo, Centre d'Études et de Recherches sur le Développement International (CERDI), Université Clermont Auvergne [2017-2020] (UCA [2017-2020])-Centre National de la Recherche Scientifique (CNRS), CEREG - University of Yaounde 2, ANR-10-LABX-0014,IDGM+,Designing new international development policies from research outcomes. An enhanced(2010), and ANR-10-LABX-0014,IDGM+,Designing new international development policies from research outcomes. An enhanced 'Initiative for Development and Global Governance'(2010)
- Subjects
Economics and Econometrics ,Private credit ,media_common.quotation_subject ,JEL: J - Labor and Demographic Economics/J.J8 - Labor Standards: National and International/J.J8.J80 - General ,Developing country ,Developing countries ,JEL: G - Financial Economics/G.G2 - Financial Institutions and Services/G.G2.G21 - Banks • Depository Institutions • Micro Finance Institutions • Mortgages ,0502 economics and business ,Development economics ,JEL: I - Health, Education, and Welfare/I.I3 - Welfare, Well-Being, and Poverty/I.I3.I30 - General ,Economics ,Bank penetration ,Trickle-down hypothesis ,Asset (economics) ,050207 economics ,10. No inequality ,Financial services ,media_common ,Decent job ,Financial outreach ,Financial inclusion ,[SHS.STAT]Humanities and Social Sciences/Methods and statistics ,050208 finance ,Poverty ,business.industry ,05 social sciences ,1. No poverty ,JEL: O - Economic Development, Innovation, Technological Change, and Growth/O.O1 - Economic Development/O.O1.O16 - Financial Markets • Saving and Capital Investment • Corporate Finance and Governance ,JEL: O - Economic Development, Innovation, Technological Change, and Growth/O.O1 - Economic Development/O.O1.O15 - Human Resources • Human Development • Income Distribution • Migration ,[SHS.ECO]Humanities and Social Sciences/Economics and Finance ,Investment (macroeconomics) ,JEL: D - Microeconomics/D.D3 - Distribution/D.D3.D31 - Personal Income, Wealth, and Their Distributions ,Working poverty ,Outreach ,Remittances ,[SHS.ENVIR]Humanities and Social Sciences/Environmental studies ,8. Economic growth ,Prosperity ,business - Abstract
International audience; Understanding the channels through which financial inclusion affects poverty reduction remains a key policy issue in development debates. Considering that labour is the main asset of the poor, this paper investigates the effect of financial outreach on the number of workers living below the poverty line. It also analyses whether this effect may occur through increasing investment, remittances, private credit and the number of rich workers who can provide employment opportunities to the poorest. The study finds that improving financial outreach through additional bank branches reduces the number of poor workers, especially in developing countries hit by macro economic instability. In addition, this effect occurs mainly through credit expansion, while other channels substitute financial outreach in countries with a low level of financial development.
- Published
- 2020
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