Financial Sector Development and Poverty Alleviation in the SADC Region

Authors

  • Samkele Leve University of Fort Hare, East London Campus
  • Forget M. Kapingura University of Fort Hare, East London Campus

Keywords:

Financial sector development, poverty, GMM.

Abstract

Financial development is widely regarded as another conduit through which poverty can be reduced. The study empirically examines the relationship between financial sector development and poverty reduction in SADC countries utilising the Generalised Method of Moments technique for the period 1980 to 2017. The empirical results indicate that the effect of the different measures of financial sector development on poverty in the SADC region is mixed. Six out of nine financial development variables have a negative effect on poverty in the SADC region. In terms of financial depth, the empirical results reveal mixed outcomes. Results on financial system stability confirm the notion that a stable financial system is beneficial to the poor. The results also reveal that financial inclusion or access to financial services significantly reduces poverty in the SADC region. The results thus suggest that financial sector development is beneficial to the poor when it is inclusive and stable. The results imply that policies aimed at ensuring a stable financial system, which is also inclusive, should be pursued if the poor are to benefit from the financial system.

Downloads

Published

2019-12-31

How to Cite

Leve, S., & Kapingura, F. M. (2019). Financial Sector Development and Poverty Alleviation in the SADC Region. Journal of Reviews on Global Economics, 8, 1268–1279. Retrieved from https://lifescienceglobalca.com/index.php/jrge/article/view/6317

Issue

Vol. 8 (2019)

Section

Special Issue - Africa’s Economic Development Agenda and Sustainable Growth

License

Policy for Journals/Articles with Open Access

Authors who publish with this journal agree to the following terms:

  • Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.

  • Authors are permitted and encouraged to post links to their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work

Policy for Journals / Manuscript with Paid Access

Authors who publish with this journal agree to the following terms:

  • Publisher retain copyright .

  • Authors are permitted and encouraged to post links to their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work .