ACCESS TO FINANCE AND RATE OF POVERTY IN SUB-SAHARAN AFRICA
Journal Title: Ilorin Journal of Economic Policy - Year 2020, Vol 7, Issue 1
Abstract
The challenge of high rate of poverty and how to address it continues to be the most persistent discuss in international development debates. In the heart of most academic researchers and policy makers are question on what makes sub-Saharan Africa (SSA) the poorest region in the world and what can be done to rescue the populace from the vicious cycle of poverty. This study examined the effect of access to finance and poverty level in SSA. Secondary data on household per capita consumption, number of commercial bank branches per one hundred thousand adults, number of automated teller machines (ATMs) per one hundred thousand adults, number of depositors per one thousand adults, number of borrowers from commercial banks per one thousand adults, per capita income, percentage of dependants over the active working population, trade openness, real interest rate, government expenditure as well as GINI index covering 2004-2018 were sourced from the World Development Indicators (WDI) of the World Bank (2019) and Global Financial Development (2019). Data collected were analysed using econometric method of Panel Ordinary Least Squares. The study found that number of commercial bank branches per 100,000 adults, number of ATMs per 100,000 adults and the number of depositors account per 1000 adults had positive and significant impact on poverty level (household final per capita consumption-expenditure). Whereas, borrowers from banks per 1000 adults had positive but insignificant impact on poverty level. The study concluded that overall access to finance positively impacted the level of poverty in SSA. Hence, access to finance can be used as tool for improving the welfare of the people and in turn reduce the rate of poverty in SSA.
Authors and Affiliations
Taiwo Wakilat Bello & Opeyeni Nathaniel Oladunjoye
Keywords
Related Articles
- EP ID EP684195
- DOI -
- Views 268
- Downloads 0
ACCESS TO FINANCE AND RATE OF POVERTY IN SUB-SAHARAN AFRICA
The challenge of high rate of poverty and how to address it continues to be the most persistent discuss in international development debates. In the heart of most academic researchers and policy makers are question on wh...
ECONOMIC GROWTH, MOTORISATION AND ROAD TRAFFIC SAFETY IN NIGERIA
The yearning for increasing economic growth has been the focus of many policy makers in the country. This noble objective has come with an increasing level of household wealth which is displayed in form of increasing mot...
ASYMMETRIC INFLUENCE OF FINANCIAL DEVELOPMENT ON UNEMPLOYMENT IN NIGERIA
The existing studies show conflicting results in the interaction between unemployment and financial development. In this study, we examine the asymmetric effect of financial development on unemployment in Nigeria. Using...
ECONOMIC GROWTH AND POVERTY REDUCTION IN NIGERIA: THE ROLE OF INSTITUTIONS
It is worthy of note that the link between economic growth and poverty can be altered in the presence of institutions. The role quality institutions play in economic growth and poverty cannot be overemphasized as it has...
TWIN DEFICIT HYPOTHESIS IN THE PRESENCE OF STRUCTURAL BREAKS IN NIGERIA
Empirical studies on twin deficit debate have focused on how current account imbalances are related to budget imbalance without considering underlying structural forces associated with domestic economy. The main objectiv...