THE NEXUS AMONG FINANCIAL DEVELOPMENT AND POVERTY REDUCTION: AN APPLICATION OF ARDL APPROACH FROM THE MENA REGIONJournal: Journal of Life Economics (JLECON) (Vol.1, No. 2)
Publication Date: 2015-10-30
Authors : Leila CHEMLI;
Page : 133-148
Keywords : financial development; poverty reduction; ARDL approach.;
The objective of this paper is to examine the relationship between financial development and poverty reduction in 8 MENA countries (Algeria, Egypt, Iran, Jordan, Mauritania, Morocco, Tunisia and Yemen) over the period of 1990-2012 by using an “ARDL approach”. Our empirical results show that the financial development favors the poor. The ratio to domestic credit to the private sector as % of GDP is significant and positive for Algeria, Iran, Jordan, and Tunisia. This country represents a sample of the upper-middle-income economies. While the ratio to liquid liabilities (M3) as % of GDP is significant and positive for our entire sample. This result suggests that access to credit for the poor remains a challenge.
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Last modified: 2015-08-04 01:00:45