Financial development is one of the pillars of economic development and growth at national level. While it improves revenue at macro level, its effect on distribution of wealth or income inequality and poverty is unknown. Therefore, the present paper is an analytical attempt to analyze the effects of financial development on poverty along with the factors effective in poverty in selected member...

In this article, I try to find out what are the effects of financial variablessuch as ratio of private sector deposits to GDP and ratio of bank credit toprivate sector to GDP and value of stocks trade in Tehran stockexchange to total current value of stocks and private sector liquidity toGDP on total investment.We use two models to test our hypothesis the first is a model for Iranand the second...

from among the major problems of iran's present financial resources allocation system, one could refer to unclear relations between financial resources allocation policies and economic indicators as well as insufficient attention to the allocations according to projects priorities, absence of a controlled mechanism for allocation aimed for decreasing or eliminating deviations from the plan...

We study the effects of differences in local financial development within an integrated financial market. We construct a new indicator of financial development by estimating a regional effect on the probability that, ceteris paribus, a household is shut off from the credit market. By using this indicator we find that financial development enhances the probability an individual starts his own bu...

Many countries have either eliminated or considerably reduced reserve requirements during the last decade. This paper derives the optimal reserve requirements of a simple economy with production and ®nancial intermediation subject to costly state veri®cation, and shows that one motivation for the widely observed reduction in the level of mandatory reserves is linked to the process of ®nancial m...

We thank the World Bank for funding and Asli Demirguc-Kunt and participants at the World Bank conference on deposit insurance for their comments and suggestions. The views expressed are the authors' own and do not necessarily reflect those of the World Bank, its Board of Directors, or the countries they represent.

This paper studies the impact of cross-country variation in financial market development on firms’ financing choices and growth rates using comprehensive firm-level datasets. We document that in less financially developed economies, small firms grow faster and have lower debt to asset ratios than large firms. We then develop a quantitative model where financial frictions drive firm growth and d...