Identifying Constraints To Financial Inclusion And Their Impact On Gdp And Inequality PDF Download
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| Author | : Ms.Era Dabla-Norris |
| Publisher | : International Monetary Fund |
| Total Pages | : 49 |
| Release | : 2015-01-27 |
| Genre | : Business & Economics |
| ISBN | : 1498381596 |
Download Identifying Constraints to Financial Inclusion and Their Impact on GDP and Inequality Book in PDF, ePub and Kindle
We develop a micro-founded general equilibrium model with heterogeneous agents to identify pertinent constraints to financial inclusion. We evaluate quantitatively the policy impacts of relaxing each of these constraints separately, and in combination, on GDP and inequality. We focus on three dimensions of financial inclusion: access (determined by the size of participation costs), depth (determined by the size of collateral constraints resulting from limited commitment), and intermediation efficiency (determined by the size of interest rate spreads and default possibilities due to costly monitoring). We take the model to a firm-level data from the World Bank Enterprise Survey for six countries at varying degrees of economic development—three low-income countries (Uganda, Kenya, Mozambique), and three emerging market countries (Malaysia, the Philippines, and Egypt). The results suggest that alleviating different financial frictions have a differential impact across countries, with country-specific characteristics playing a central role in determining the linkages and tradeoffs between inclusion, GDP, inequality, and the distribution of gains and losses.
| Author | : Era Dabla-Norris |
| Publisher | : |
| Total Pages | : 0 |
| Release | : 2017 |
| Genre | : Economic development |
| ISBN | : |
Download Distinguishing Constraints on Financial Inclusion and Their Impact on GDP and Inequality Book in PDF, ePub and Kindle
Abstract: We develop a micro-founded general equilibrium model with heterogeneous agents to identify pertinent constraints to financial inclusion. We evaluate quantitatively the policy impacts of relaxing each of these constraints separately, and in combination, on GDP and inequality. We focus on three dimensions of financial inclusion: access (determined by the size of participation costs), depth (determined by the size of collateral constraints resulting from limited commitment), and intermediation efficiency (determined by the size of interest rate spreads and default possibilities due to costly monitoring). We take the model to firm-level data from the World Bank Enterprise Survey and World Development Indicators for six countries at varying degrees of economic development - three low income countries (Uganda, Kenya, Mozambique), and three emerging market countries (Malaysia, the Philippines, and Egypt). The results suggest that alleviating different financial frictions have a differential impact across countries, with country-specific characteristics playing a central role in determining the linkages and trade-offs among inclusion, GDP, inequality, and the distribution of gains and losses.
| Author | : |
| Publisher | : |
| Total Pages | : |
| Release | : 2015 |
| Genre | : Electronic book |
| ISBN | : |
Download Distinguishing Constraints on Financial Inclusion and Their Impact on GDP, TFP, and Inequality Book in PDF, ePub and Kindle
| Author | : Ms.Izabela Karpowicz |
| Publisher | : International Monetary Fund |
| Total Pages | : 31 |
| Release | : 2014-09-12 |
| Genre | : Business & Economics |
| ISBN | : 1498344836 |
Download Financial Inclusion, Growth and Inequality Book in PDF, ePub and Kindle
Financial inclusion has been one of the key pillars of Colombia’s development strategy for a number of years. Financial inclusion policies have aimed at channeling microcredit to poor, spreading formal banking system usage, fostering electronic payment acceptance, and making financial services more affordable. Using simulations from a general equilibrium model it is possible to identify the most binding financial sector frictions that preclude financial inclusion of enterprises, and study the effects on growth and inequality of efforts to remove these frictions. The study finds that lowering contraints on collateral promises higher growth while inequality is better tackled through measures that lower the financial participation cost.
| Author | : Goksu Aslan |
| Publisher | : International Monetary Fund |
| Total Pages | : 32 |
| Release | : 2017-11-07 |
| Genre | : Business & Economics |
| ISBN | : 1484328728 |
Download Inequality in Financial Inclusion and Income Inequality Book in PDF, ePub and Kindle
We investigate the link between gender inequality in financial inclusion and income inequality, with three contributions to the recent literature. First, using a micro-dataset covering 146,000 individuals in over 140 countries, we construct novel, synthetic indices of the intensity of financial inclusion at the individual and country level. Second, we derive the distribution of individual financial access “scores” across countries to document a “Kuznets”-curve in financial inclusion. Third, cross-country regressions confirm that our measure of inequality in financial access is significantly related to income inequality, above and beyond other factors previously highlighted in the literature.
| Author | : Ms.Ratna Sahay |
| Publisher | : International Monetary Fund |
| Total Pages | : 83 |
| Release | : 2020-07-01 |
| Genre | : Business & Economics |
| ISBN | : 1513512242 |
Download The Promise of Fintech Book in PDF, ePub and Kindle
Technology is changing the landscape of the financial sector, increasing access to financial services in profound ways. These changes have been in motion for several years, affecting nearly all countries in the world. During the COVID-19 pandemic, technology has created new opportunities for digital financial services to accelerate and enhance financial inclusion, amid social distancing and containment measures. At the same time, the risks emerging prior to COVID-19, as digital financial services developed, are becoming even more relevant.
| Author | : Ms.Era Dabla-Norris |
| Publisher | : International Monetary Fund |
| Total Pages | : 39 |
| Release | : 2015-06-15 |
| Genre | : Business & Economics |
| ISBN | : 1513547437 |
Download Causes and Consequences of Income Inequality Book in PDF, ePub and Kindle
This paper analyzes the extent of income inequality from a global perspective, its drivers, and what to do about it. The drivers of inequality vary widely amongst countries, with some common drivers being the skill premium associated with technical change and globalization, weakening protection for labor, and lack of financial inclusion in developing countries. We find that increasing the income share of the poor and the middle class actually increases growth while a rising income share of the top 20 percent results in lower growth—that is, when the rich get richer, benefits do not trickle down. This suggests that policies need to be country specific but should focus on raising the income share of the poor, and ensuring there is no hollowing out of the middle class. To tackle inequality, financial inclusion is imperative in emerging and developing countries while in advanced economies, policies should focus on raising human capital and skills and making tax systems more progressive.
| Author | : Francesco Grigoli |
| Publisher | : International Monetary Fund |
| Total Pages | : 27 |
| Release | : 2017-03-28 |
| Genre | : Business & Economics |
| ISBN | : 1475589638 |
Download Inequality Overhang Book in PDF, ePub and Kindle
The linearity of the relationship between income inequality and economic development has been long questioned. While theory provides arguments for which the shape of relationship may be positive for low levels of inequality and negative for high ones, most of the empirical literature assumes a linear specification finding conflicting results. Employing an innovative empirical approach robust to endogeneity, we find pervasive evidence of nonlinearities. In particular, similar to the debt overhang literature, we identify an inequality overhang level in that the slope of the relationship between income inequality and economic development switches from positive to negative at a net Gini of about 27 percent. We also find that in an environment characterized by widespread financial inclusion and high income concentration, rising income inequality has a larger negative impact on economic development because banks may curtail credit to customers at the lower end of the income distribution. On the positive side, a sufficiently high female labor participation can act as a shock absorber reducing such negative impact, possibly through a more efficient allocation of resources.
| Author | : Purva Khera |
| Publisher | : International Monetary Fund |
| Total Pages | : 30 |
| Release | : 2021-06-11 |
| Genre | : Business & Economics |
| ISBN | : 1513584669 |
Download Is Digital Financial Inclusion Unlocking Growth? Book in PDF, ePub and Kindle
Digital financial services have been a key driver of financial inclusion in recent years. While there is evidence that financial inclusion through traditional services has a positive impact on economic growth, do the same results carry over for digital financial inclusion? What drives digital financial inclusion? Why does it advance more in some countries but not in others? Using new indices of financial inclusion developed in Khera et. al. (2021), this paper addresses these questions for 52 developing countries. Using cross-sectional instrument variable procedure, we find that the exogenous component of digital financial inclusion is positively associated with growth in GDP per capita during 2011-2018, which suggests that digital financial inclusion can accelerate economic growth. Fractional logit and random effects empirical estimation identifies access to infrastructure, financial and digital literacy, and quality of institutions as key drivers of digital financial inclusion. These findings are then used to help inform policy recommendations in areas related to the digitization of financial services to promote financial inclusion.
| Author | : Era Dabla-Norris |
| Publisher | : |
| Total Pages | : 0 |
| Release | : 2015 |
| Genre | : |
| ISBN | : |
Download Distinguishing Constraints on Financial Inclusion and Their Impact on GDP, TFP, and the Distribution of Income Book in PDF, ePub and Kindle
A general equilibrium model featuring multiple realistic sources of financial frictions is developed to study how different constraints interact in equilibrium. We highlight, distinguish, and evaluate their differential impacts and rich interactions. The economic impact of financial inclusion policies in an economy depends not only on which constraint is alleviated, but also on the tightness of other constraints. Policy instruments should target the most binding constraint, which likely varies across countries. Moreover, there are important tradeoffs between financial inclusion, GDP, and the distribution of income. The transitional dynamics also differ from those in steady states. Policy makers should consider both.
