Levine, RossBeck, ThorstenDemirguc-Kunt, Asli2013-06-192013-06-192004-06https://hdl.handle.net/10986/14038While substantial research finds that financial development boosts overall economic growth, the authors study whether financial development is pro-poor: Does financial development disproportionately raise the income of the poor? Using a broad cross-country sample, the authors find that the answer is yes: Financial intermediary development reduces income inequality by disproportionately boosting the income of the poor and therefore reduces poverty. This result is robust to controlling for simultaneity bias and reverse causation.en-USCC BY 3.0 IGOABSOLUTE POVERTYCAPITAL MARKETSCORPORATE FINANCEDEVELOPMENT BANKSECONOMIC DEVELOPMENTECONOMIC PERFORMANCEFINANCIAL DEVELOPMENTFINANCIAL ECONOMICSFINANCIAL INTERMEDIATIONFINANCIAL MARKETSFINANCIAL SECTORFINANCIAL SERVICESGROSS DOMESTIC PRODUCTGROWTH POLICIESGROWTH RATEINCOME DISTRIBUTIONINCOME INEQUALITYINCOME LEVELSINFANT MORTALITYINFLATION RATEMACROECONOMIC POLICIESMACROECONOMIC STABILITYMARKET COMPETITIONPOLITICAL ECONOMYPOVERTY ALLEVIATIONPRIVATE SECTORPRODUCTIVITYABSOLUTE POVERTYABSOLUTE VALUEADVERSE SELECTIONAGGREGATE GROWTHAGGREGATE MEASUREANNUAL GROWTHANNUAL GROWTH RATEASYMMETRIC INFORMATIONAVERAGE ANNUALAVERAGE GROWTHAVERAGE INCOMEAVERAGE INCOME GROWTHCAPITAL ACCUMULATIONCAPITAL MARKETSCENTRAL BANKCOMPETITIVENESSCORPORATE FINANCECORRUPTIONCOUNTRY REGRESSIONSCOUNTRY-SPECIFIC EFFECTSCREDIT CONSTRAINTSCREDIT MARKETCROSS-COUNTRY STUDIESDEBTDEPENDENT VARIABLEDESCRIPTIVE STATISTICSDEVELOPED COUNTRIESDEVELOPING COUNTRIESDISTRIBUTION EFFECTDISTRIBUTION FUNCTIONDISTRIBUTIONAL CHANGEDISTRIBUTIONAL COMPONENTDISTRIBUTIONAL EFFECTDISTRIBUTIONAL EFFECTSECONOMIC DEVELOPMENTECONOMIC GROWTHECONOMIC HISTORYECONOMIC PERFORMANCEECONOMIC PERSPECTIVESECONOMIC STUDIESEDUCATIONAL ATTAINMENTEMPIRICAL GROWTH LITERATUREEMPIRICAL LITERATUREEMPIRICAL RESULTSEQUAL ACCESSERROR TERMEXPLANATORY VARIABLESEXPORTSFINANCIAL DEPTHFINANCIAL DEVELOPMENTFINANCIAL MARKETSFINANCIAL SECTORGDPGDP PER CAPITAGINI COEFFICIENTGROSS DOMESTIC PRODUCTGROWTHGROWTH COMPONENTGROWTH DETERMINANTSGROWTH EFFECTGROWTH PRO-POORGROWTH RATEGROWTH RATESHUMAN CAPITALINCOMEINCOME DISTRIBUTIONINCOME GROUPSINCOME GROWTHINCOME GROWTH RATEINCOME INEQUALITYINCOME LEVELSINCOME QUINTILESINCOME SHAREINCOME SHOCKSINCOMESINEQUALITYINEQUALITY CHANGESINEQUALITY FALLSINEQUALITY MEASURESINFANT MORTALITYINFLATION RATEINTERNATIONAL DEVELOPMENTINVESTMENT OPPORTUNITIESLEGAL ORIGINLINEAR RELATIONSHIPLORENZ CURVELOW INCOMESMACROECONOMIC POLICIESMACROECONOMIC STABILITYMACROECONOMICSMEAN INCOMEMIDDLE INCOME COUNTRIESMONETARY ECONOMICSNORMAL DISTRIBUTION0 HYPOTHESISPER CAPITA GROWTHPER CAPITA GROWTH RATEPOINT ESTIMATEPOLICY RESEARCHPOLITICAL ECONOMYPOPULATION GROWTHPOPULATION GROWTH RATESPOSITIVE EFFECTPOSITIVE IMPACTPOSITIVE RELATIONSHIPPOVERTYPOVERTY ALLEVIATIONPOVERTY GAPPOVERTY INCIDENCEPOVERTY REDUCTIONPOVERTY-GROWTH-INEQUALITY TRIANGLEPRIMARY ENROLLMENTPRIMARY SCHOOLPRIVATE SECTORPRO-GROWTH POLICIESPUBLIC POLICIESPUBLIC SECTORREAL GDPREDUCING POVERTYRELATIVE INCOMEREVERSE CAUSATIONSIGNIFICANCE LEVELSIGNIFICANT CORRELATIONSIGNIFICANT EVIDENCESIGNIFICANT IMPACTSOCIAL SERVICESSTANDARD DEVIATIONTRADE OPENNESSVALUATIONWEALTHMicrodata SetWorld Bank10.1596/1813-9450-3338