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Financial Sector Development and Poverty Reduction in Nigeria: A Vector Autoregression Analysis (1980-2010)

机译:尼日利亚的金融部门发展与减贫:矢量自回归分析(1980-2010年)

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This study examines the nexus between financial sector development and poverty reduction in Nigeria using Vector autoregressive (VAR) model. The choice of the study has been motivated by the alleged failure of the financial sector development in bringing about a reduction in the worsening trend in poverty incidence in Nigeria. The evidences from both the VAR and impulse response show that the indirect effect of economic growth exerts the strongest influence on poverty reduction in the short run but could be detrimental to the poor in the long run due to the adverse effect of income inequality. Furthermore, the relationship between poverty and the financial deepening proxied by broad money supply (M2) is negative and significant. Hence, the McKinnon conduit effect is the likely main transmission channel through which the poor benefit from the financial sector development in the long run. The study, however, concludes that credits to private sector, contrary to the general belief, have failed to cause a reduction in the incidence of poverty in Nigeria.
机译:这项研究使用向量自回归(VAR)模型研究了尼日利亚金融业发展与减贫之间的关系。进行这项研究的原因是,据称金融部门的发展未能减少尼日利亚贫困率的恶化趋势。 VAR和冲动响应的证据表明,经济增长的间接影响在短期内对减贫的影响最大,但从长远来看,由于收入不平等的不利影响,它可能对穷人不利。此外,贫困与广义货币供应量(M2)带来的金融深化之间的关系是消极且重要的。因此,从长远来看,麦金农管道效应是穷人可能从中受益的主要传播渠道。但是,该研究得出的结论是,与普遍看法相反,对私营部门的信贷未能使尼日利亚的贫困发生率降低。

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