Financial Deepening And Poverty Reduction in E7 Countries: Panel Bootsrap Causality

Yıl 2019, Cilt: 18 Sayı: 1, 508 - 521, 22.01.2019

Günay Özcan , İbrahim Özmen

https://doi.org/10.21547/jss.457377

Cited By: 1

Öz

In this study, it is
aimed to investigate the causality linkage between financial deepening and
poverty in the E7 countries for the periods of 2001-2006. The causality linkage
the variable was tested using the bootstrap panel Granger causality analysis.
The results show that the trickle down hypothesis is valid only in one of the
E7 countries, whereas the complementary hypothesis is valid in three of the E7
countries. These results imply one way causality from private sector credits
(DC) to poverty and from poverty to money supply (M2Y).

Anahtar Kelimeler

Financial deepening, Poverty, Trickle down, E7 Countries, Bootstrap panel causality

E7 Ülkelerinde Finansal Derinleşme ve Yoksulluk İlişkisi: Bootstrap Panel Nedensellik Analizi

Öz

Bu çalışmada, E7
ülkelerinde finansal derinleşme ve yoksulluk arasındaki nedensellik ilişkisinin
2001-2016 dönemleri için araştırılması amaçlanmaktadır. Değişkenler arasındaki
nedensellik ilişkinin test edilmesinde bootsrap panel Granger nedensellik
analizi kullanılmıştır. Elde edilen sonuçlar trickle down hipotezinin (damlama
hipotezinin) sadece bir ülkede geçerli olduğunu diğer yandan tamamlayıcılık
hipotezinin (complementary hypothesis) ise üç ülkede geçerli olduğunu
göstermektedir. Bu sonuçlar özel sektör kredilerinden (DC) yoksulluğa doğru tek
yönlü, yoksulluktan para arzına (M2Y) doğru tek yönlü nedensellik ilişkisini
ifade etmektedir.

Anahtar Kelimeler

Finansal derinlik, Yoksulluk, Trickle down, E7 Ülkeleri, Bootstrap panel nedensellik

Kaynakça

• Abdin, J. (2016). Financial development and poverty reduction: Exploring the links between the ıssues using evidence from Bangladesh. International Journal of Financial Research, 7(4), 44-65.
• Abosedra, S., Shahbaz, M. & Nawaz, K. (2016). Modeling causality between financial deepening and poverty reduction in Egypt. Social Indicators Research, 126(3), 955-969.
• Adonsou, F. D. & Sylwester, K. (2016). Financial development and poverty reduction in developing countries: New evidence from banks and microfinance institutions. Review of Development Finance, 6, 82-90.
• Aghion, P. & Howitt, P. (1990). A model of growth through creative destruction. NBER Working Papers 3223, National Bureau of Economic Research.
• Akhter, S. (2010). Cross country evidence on the linkages between financial development and poverty. International Journal of Business and Management, 5(1), 3-19.
• Akıncı, M. (2015). Bulanık suda balık avlamak: Tricle down etkisinin Türkiye ekonomisinde bölgeler arası tahmini. Çalışma ve Toplum Dergisi, 2015/1, 195-220.
• Beck, T., Demirguc-Kunt, A., & Levine, R. (2004). Finance, inequality, and poverty: cross-country evidence, National Bureau of Economic Research.
• Beck, T., Demirgüç-Kunt, A. & Levine, R. (2007). Finance, inequality and the poor. Journal of Economic Growth, 12, 27-49. Belen, M. & Karamelikli, H. (2016). Finansal gelişme ve yoksulluğun azalması arasındaki ilişki: ampirik bir inceleme. Abant İzzet Baysal Üniversitesi Sosyal Bilimler Enstitüsü Dergisi, 16 (1), 125-141.
• Booth, C. (1902). Life and labour of the people in London. 1. Poverty, New York: Augustus M. Kelley Publishers.
• Bresusch T. S. & Pagan, A. R. (1980). A lagrange multiplier test and its applications to model specification in econometrics. Review of Economic Studies, 47 (1), 239-253.
• Clarke, G., Xu, L. C., & Zou, H.-F. (2013). Finance and income inequality: test of alternative theories, Annals of Economics and Finance, 14, 491-516.
• Darrat, A. F., Abosedra, S. & Aly, H. (2005). Assessing the role of financial deepening in business cycles: the experience of The United Arab Emirates. Applied Financial Economics, 15(7), 447-453.
• Deininger K. & Squire, L. (1996). A new data set measuring income inequality. The World Bank Economic Review, Washington DC,10(3), 565-591.
• Dollar, D. & Kraay, A. (2002). Growth is good for the poor. Journal of Economic Growth, 7, 195-225.
• Easterly, W. & Fischer, S. (2001). Inflation and the poor. Journal of Money, Credit and Banking, 33(2), 160-178.
• Fan, S., Nyanga, D. & Rao, N. (2005). Public investment and poverty reduction in Tanzania. In Development Strategy And Governance Discussion Paper 18. Washington, DC: International Food Policy Research Institute.
• Galbis, V. (1977). Financial ıntermediation and economic growth in less developed countries: a theoretical approach. Journal of Development Studies, 13, 58-72.
• Gibson, H. D. & Tsakalatos, E. (1994). The scope and limits of financial liberalization in developing countries: a critical survey. Journal of Development Studies, 30(3), 578-628.
• Greenwood, J. & Jovanic, B. (1990). Finacial development, growth and the distribution of income. Journal of Political Economy, 98 (5), 1075-1107.
• Gurley, J. G. & Shaw, E. S. (1955). Financial aspects of economic development. American Economic Review, 45, 515-538.
• Gültekin, M. (2007). Georg Simmel’in düşüncesinde modern toplum ve tüketim kültür. Elektronik Sosyal Bilimler Dergisi, 6(20), 229-245.
• Hicham, A. (2017). Financial development and poverty reduction nexus: a co-integration and causality analysis in selected Arabic Countries. Academic Journal of Economic Studies, 3(2), 28–35.
• Honohan, P. (2004). Financial development, growth, and poverty: how close are the links? Policy Research Working Paper No. 3203. World Bank: Washington, DC.
• International Monetary Fund (2017). Fiscal monitor: tackling ınequality, Washington. October.
• Jalilian, H. & Kirkpatrick, J. (2002). Financial development and poverty reduction in developing countries, International Journal of Finance & Economics, 7, 97-108.
• Jeanneney, S. G. & Kpodar, K. (2008). Financial development and poverty reduction: can there be a benefit without a cost?. IMF Working Paper No. WP/08/62, International Monetary Fund, Washington, DC.
• Kaldor, N. (1957). A model of economic growth. The Economic Journal, 67 (268), 591-624.
• Kaminsky, G. L. & Reinhart, C. M. (1999). The twin crises: the causes of banking and balance of payments problems. American Economic Review, 89(3), 473-500
• Kar, M., Ağır, H. & Peker, O. (2011a). Financial development and poverty reduction in Turkey. Department of Economics, Adana, Çukurova University. Turkey.
• Kar, M., Nazlıoğlu, Ş. & Ağır, H. (2011b). Financial development and economic growth nexus in the MENA countries: Bootsrap panel granger causality analysis. Economic Modelling. 28, 685-693.
• Keho, Y. (2017). Financial development and poverty reduction: evidence from selected African Countries. International Journal of Financial Research, 8(4), 90-98.Khan, H. G. A., Khan, A. Z., Ahmad, A.& Siraj, A. E. (2011). Financial sector development and poverty reduction. Global Journal of Management and Business Research, 11(5), 58-62.
• Khan, D., Azra, Ahmad, E.& Jan, W. U. (2012). Financial development and poverty alleviation: Time series evidence from Pakistan. World Applied Sciences Journal, 18, 1576-1581.
• King, R. G. & Levine, R. (1993). Finance, entrepreneurship and growth. Journal of Monetary Economics, 32, 513-542.
• Kónya, L. (2006). Exports and growth: Granger causality analysis on OECD Countries with a panel data approach. Economic Modellling, 23, 978-992.
• Levine, R., & Zervos, S. (1998). Stock markets, banks, and economic growth, The American Economic Review, 88, 537–558.
• Levine, R. (2005). Finance and growth: Theory and evidence. Handbook of Economic Growth. 1, 865-934.
• Lundberg, M. & Squire, L. (1999). The Simultaneous Evolution of Growth and Inequality. World Bank. Washington, DC.
• Mckinnon, R. I. (1973). Money and capital in economic development. Brookings Institution Press.
• Mellor, J. W. (1999). Faster, more equitable growth: the relation between growth in agriculture and poverty reduction, Cambridge: Harvard University Press.
• Menyah, K., Nazlıoğlu, Ş.& Rufael, Y. W. (2014). Financial development, trade openness and economic growth in African Countries: new insight from a panel causality approach. Economic Modelling, 37, 386-394.
• Moreno, S. P. (2011). Financial development and poverty in developing countries: a casual analysis. Empirical Economics, 41(1), 57-80.
• Nazlıoğlu, Ş., Lebe, F. & Kayhan, S. (2011). Nuclear Energy consumption and economic growth in OECD Countries: Cross-sectionaly dependent heterogeneous panel causality analysis. Energy Policy, 39, 6615-6621.
• Odhiambo, N. M. (2008). Financial depth, savings and economic growth in Kenya: A dynamic casual relationship. Economic Modelling, 25 (4), 704-713.
• Odhiambo, N. M. (2009a). Financial deepening and poverty reduction in Zambia: An amprical investegitaion. International Journal of Social Economics, 37(1), 41-53.
• Odhiambo, N. M. (2009b). Finance, growth, poverty nexus in South Africa: A dynamic causality linkage. The Journal of Socio-Economics, 38, 320-325.
• Pagano, M. (1993). Financial markets and growth: An overview. European Economic Review, 37, 613-622.
• Perotti, R. (1993). Political equilibrium, income distribution, and growth. The Review of Economic Studies, 60(4), 755–776.
• Pesaran, H. M. (2004). General diagnostic test for cross section dependence in panels, IZA Discussion Paper 1240, Institute for the Study of Labor.
• Pesaran, H. M. (2006). Estimation and ınference in large heterogeneous panels with a multifactor error structure, Econometrica, 74, 967-1012.
• Pesaran, H. M.& Yamagata, T. (2008). Testing slope homogeneity in large panels. Journal of Econometrics, 142, 50-93.
• Pradhan, R. P. (2010). The nexus between finance, growth and poverty in India: The cointegration and causality approach, Asian Social Science, 6, 114–122.
• Ravallion, M. & Datt, G. (2002). Why has economic growth been more pro-poor in some states of India than others?. Journal of Development Economics, 68, 381–400.
• Romer, P. M. (1986). Increasing returns and long run growth. The Journal of Political Economy, 94(5), 1002-1037.
• Sahay R., Cihak, M., N’diaye, P.& Yotros, A. B. (2015). Rethinking financial deepening: stability and growth in emerging markets, IMF Discussion Note. SDN/15/08.
• Schumpeter, J. A. (1912). The theory of economic development: An ınquiry into profits, capital, credit, ınterest, and the business cycle, Cambridge: Harvard University Press.
• Sehrawat, M.& Giri, A. K. (2016). Financial development and poverty reduction: panel data analysis of South Asian Countries. International Journal of Social Economics, 43(4), 400-416.
• Şenses, F. (2014). Gelir dağılımı ve yoksulluk: Temel eğilimler, nedenler ve politikalar. kalkınmada yeni yaklaşımlar. A. F. Aysan ve D. Dumludağ (Ed.), Kalkınmada yeni yaklaşımlar (ss. 93-121), İstanbul: İmge Yayınları. Seven, Ü. & Coşkun, Y. (2016). Does financial development reduce income inequality and poverty? evidence from Emerging Countries. Emerging Markets Review, 26, 34-63.
• Shaw, E. S. (1973). Financial deepening in economic development. New York: Oxford University Press.
• Singh, R. J. & Huang, Y. (2015). Financial deepening, property rights, and poverty: Evidence from Sub Saharan Africa. Journal of Banking and Financial Economics, 1(3)2015, 130-151.
• Solow, R. M. (1956). A contribution to the theory of economic growth. The Quarterly Journal of Economics, 70(1), 65-94.
• Todaro, M. (1997). Economic development (6th ed.). NY: Addison Wesley Longman Ltd.
• Uddin, G. S., Shahbaz, M., Arouri, M. & Teulon, F. (2014). Financial development and poverty reduction nexus: a cointegration and causality analysis in Bangladesh. Economic Modelling, 36, 405-412.
• Uddin, G. S., Kyophilavong, P. & Sydee, N. (2012). The casual nexus of banking sector development and poverty reduction in Bangladesh. International Journal of Economics and Financial Issues, 2(3), 304-311.
• Quartey, P. (2005). Financial sector development, savings mobilization and poverty reduction in Ghana, In UNU WIDER 2005. Research Paper No. 2005/71, Helsinki, Finland: United Nations University.
• Woolard, I. & Leibbrandt, M. V. (1999). Measuring poverty in South Africa, DPRU Working Papers No. 99/33 (October). Development Policy Research Unit, University of Cape Town.
• Yılmaz, Z. (2012). Yoksulları ne Yapmalı, Dipnot Yayınları: İstanbul.
• Zahonogo, P. (2017). Financial development and poverty in developing countries: Evidence from Sub Saharan Africa. International Journal of Economics and Finance, 9(1), 211-220.