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The nexus of financial deepening and poverty: The case of black sea region economies

  • Chenghui Lu
  • , Azer Dilanchiev

Research output: Contribution to journalArticlepeer-review

Abstract

This paper analyzes the effect of financial deepening on poverty in the emerging Black Sea market economies with new generation causality analysis techniques utilizing panel data from 1996 to 2020. The econometric method of panel data is applied to the six emerging economies. It can be seen that the causal relationship between domestic loans to the private sector (DPS) and per capita household consumption expenditure (HCE) is significant in Georgia, Turkey and Ukraine. In addition, a bidirectional causality relationship is observed in Georgia. Romania, Georgia, Turkey and Ukraine are countries where the causality between HCE and DPS is significant. It is concluded that DPS increases per capita HCE and thus effectively reduces poverty.

Original languageEnglish
Pages (from-to)1183-1205
Number of pages23
JournalSingapore Economic Review
Volume68
Issue number4
DOIs
Publication statusPublished - Jun 1 2023
Externally publishedYes

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

  1. SDG 1 - No Poverty
    SDG 1 No Poverty

Keywords

  • black sea region
  • causality analysis
  • emerging economies
  • financial deepening
  • monetization rate
  • Poverty alleviation

ASJC Scopus subject areas

  • Economics and Econometrics

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