Amanuel Della
Addis Ababa, Ethiopia
Publications
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Research Article
The Impact of Financial Development on Poverty, Growth and Inequality in Ethiopia
Author(s): Amanuel Della*
To understand the full picture of multidimensional effect of financial development, simultaneously evaluating it through growth- inequality-poverty triangle is very critical and one step ahead of traditional frameworks. This study examined the impact of financial development on poverty, growth and inequality in Ethiopia by taking into account simultaneous effects of time series data used with simultaneous equation model for the period of 1991 to 2019 as there was economic policy change in 1991. The finding shows, first, the direct impact of financial development on poverty reduction increases the proportion of population living below the national poverty line. Second, the indirect impact of financial development on poverty reduction lift up the poor through economic growth and income distribution. Third, indirect effect is pro-poor and trickle-down hypothesis firmly supported. Fourth,.. Read More»

