The Inclusive Finance Have Effects on Alleviating Poverty

Abstract

Researchers and policy makers are always paying attention to the problems of the development of finance and poverty alleviation. As the development of economic in the world, finance changes for the better day by day, and the availability of financial services increases; for a long time, the financial systems are not perfect in most developing countries and it may cause problems such as the income inequality which results in the growing gap between the rich and poor. For most developing countries, they must face the problem of how to alleviate poverty. Financial development is measured by inclusive finance in this paper but not the scale or efficiency of financial development as before. The aim of this paper is to analyse the relationship between inclusive finance and the gap of rich and poor through the panal data of Asian, African and Latin American countries from 2004 to 2013 by using generalized method of moments method.