Multi-dimensional analysis for financial development

Abstract EN

The main objective of this paper is to examine the impact of four dimensions of financial development access, depth, efficiency and stability on poverty, inequality and growth triangle simultaneously in the 7 developing countries, according to availability of data, over the period 2004-2019.

study includes 8 variables from global financial development database (GFDD), each dimension is measured by two variables, one related to banking sector and the other one for financial market, in addition to other variables that used as determinants for poverty, inequality and growth.

for an empirical study, we used simultaneous equation analysis through applying 3SLS.

results reveal that the importance of depth dimension, specially banking sector, for ameliorating poverty and inequality.

whereas indicators of financial stability were the most effective dimension in enhancing economic growth and reducing poverty in study sample, followed by indicators of financial efficiency, compared to the other dimensions of financial development.