SpringerLink
Log in

Modelling asymmetric structure in the finance-poverty nexus: empirical insights from an emerging market economy

  • Published:
Quality & Quantity Aims and scope Submit manuscript

Abstract

Deviating from previous literature, this study incorporates an asymmetric structure into how poverty reduction responds to changes in financial development. This objective is captured within the context of a nonlinear autoregressive distributed lag estimator using data from Nigeria for the periods 1980–2018. The outcomes of the findings attest to asymmetric structure in the finance-poverty nexus in the long run while the asymmetric effect is found nonexistent in the short run. It is found that expansionary and contractionary policies of the financial sector are catalysts to spur poverty reduction in Nigeria in the long run while only an expansionary policy provides a strong stimulus to accelerate poverty reduction in the short run. This study divulges the need to account for asymmetric structure and nonlinearity in the finance-poverty nexus which previous studies neglected. This study concludes that financial sector development is a panacea to propel poverty reduction in Nigeria. Based on the outcomes of the findings, it is recommended that the financial sector in Nigeria should engage in a persistent increase in the channelization of financial resources to productive and entrepreneurial activities that can spur employment opportunities for the poor. Also, stakeholders should prune the credit facilities to unproductive ventures that do not have poverty-reducing effects in the country.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Subscribe and save

Springer+ Basic
EUR 32.99 /Month
  • Get 10 units per month
  • Download Article/Chapter or Ebook
  • 1 Unit = 1 Article or 1 Chapter
  • Cancel anytime
Subscribe now

Buy Now

Price includes VAT (Germany)

Instant access to the full article PDF.

Institutional subscriptions

Fig. 1
Fig. 2
Fig. 3
Fig. 4

Similar content being viewed by others

Data availability

Data are readily available upon request.

References

  • Abdullahi, M.S.: Three things Nigeria must do to end extreme poverty (2019). Retrieved on 19/7/2020 at https://www.weforum.org/agenda/2019/03/90-million-nigerians-live-in-extreme-poverty-here-are-3-ways-to-bring-them-out/

  • Abosedra, S., Shahbaz, M., Nawaz, K.: Modeling causality between financial deepening and poverty reduction in Egypt. Soc. Indic. Res. 126(3), 955–969 (2016)

    Article  Google Scholar 

  • Abrar ul haq, M., Jali, M.R.M., Islam, G.M.N.: Household empowerment as the key to eradicate poverty incidence. Asian Soc. Work Policy Rev. 13(1), 4–24 (2019)

    Article  Google Scholar 

  • Abrar ul Haq, M., Sankar, J.P., Akram, F., Siddique, M.: The role of farmers’ attitude towards their resources to alleviate rural household poverty. Qual. Quant. (2021). https://doi.org/10.1007/s11135-021-01205-8

    Article  Google Scholar 

  • Akerlof, G.: The market for lemons: quality uncertainty and the market mechanism. Q. J. Econ. 89, 488–500 (1970)

    Article  Google Scholar 

  • Akhter, S., Daly, K.J.: Finance and poverty: evidence from fixed effect vector decomposition. Emerg. Mark. Rev. 10(3), 191–206 (2009)

    Article  Google Scholar 

  • Ali, S., Ahmad, N.: Human capital and poverty in Pakistan: evidence from the Punjab province. Eur. J. Sci. Public Policy 11, 36–41 (2013)

    Google Scholar 

  • Alpay, S.: Poverty in sub-Saharan Africa: the situation in the OIC member countries. Retrieved from statistical, economic and social research and training centre for Islamic countries (SESRTCIC), Ankara, Turkey (2007). http://www.sesrtcic.org/files/article/233.pdf

  • Alsamara, M., Mrabet, Z., Hatemi-J, A.: Pass-through of import cost into consumer prices and inflation in GCC countries: evidence from a nonlinear autoregressive distributed lags model. Int. Rev. Econ. Finance (2020). https://doi.org/10.1016/j.iref.2020.07.009

    Article  Google Scholar 

  • Aluko, O.A.: The foreign aid–foreign direct investment relationship in Africa: the mediating role of institutional quality and financial development. Econ. Aff. 40(1), 77–84 (2020)

    Article  Google Scholar 

  • Aluko, O.A., Adeyeye, O.P., Oladele, P.O.: Finance–growth nexus in sub-Saharan Africa revisited: evidence based on a new composite index. Econ. Chang. Restruct. 53, 333–355 (2020). https://doi.org/10.1007/s10644-019-09253-9

    Article  Google Scholar 

  • Aghion, P., Bolton, P.: A theory of trickle-down growth and development. Rev. Econ. Stud. 64(2), 151–172 (1997)

    Article  Google Scholar 

  • Anderson, E., d’Orey, M.A.J., Duvendack, M., Esposito, L.: Does government spending affect income poverty? A meta-regression analysis. World Dev. 103, 60–71 (2018)

    Article  Google Scholar 

  • Appiah, M., Frowne, D.I., Tetteh, D.: Re-examining the nexus between financial development and poverty reduction: evidence from emerging economies. Appl. Econ. J. 27(2), 125–144 (2020)

    Google Scholar 

  • Asghar, N., Hussain, Z., Rehman, H.U.: The impact of government spending on poverty reduction: evidence from Pakistan 1972 to 2008. Afr. J. Bus. Manag. 6(3), 845–853 (2012)

    Google Scholar 

  • Asongu, S., Nting, R.: The Role of Finance in Inclusive Human Development in Africa Revisited (No. 21/006). African Governance and Development Institute (2021)

  • Ayad, H.: Poverty reduction, financial development and economic growth in Algeria: a Gregory Hansen co-integration regime shift analysis. Econ. Res. Guard. 8(2), 40–52 (2018)

    Google Scholar 

  • Ayyagari, M., Beck, T., Hoseini, M.: Finance, law and poverty: evidence from India. J. Corp. Finan. 60, 10151 (2020). https://doi.org/10.1016/j.jcorpfin.2019.101515

    Article  Google Scholar 

  • Bahmani-Oskooee, M., Miteza, I., Tanku, A.: Exchange rate changes and money demand in Albania: a nonlinear ARDL analysis. Econ. Change Restruct. (2020). https://doi.org/10.1007/s10644-019-09261-9

    Article  Google Scholar 

  • Banerjee, A., Dolado, J., Mestre, R.: Error-correction mechanism tests for cointegration in a single-equation framework. J. Time Ser. Anal. 19(3), 267–283 (1998)

    Article  Google Scholar 

  • Beck, T., Demirgüç-Kunt, A., Levine, R.: Finance, inequality and the poor. J. Econ. Growth 12(1), 27–49 (2007). https://doi.org/10.1007/s10887-007-9010-6

    Article  Google Scholar 

  • Becker, G.S.: Human Capital and Poverty Alleviation. World Bank, Human Resources Development and Operations Policy, Washington (1995)

    Google Scholar 

  • Bolarinwa, S.T., Adegboye, A.A., Vo, X.V.: Is there a nonlinear relationship between financial development and poverty in Africa? J. Econ. Stud. (2021a). https://doi.org/10.1108/JES-10-2019-0486

    Article  Google Scholar 

  • Bolarinwa, S.T., Olaoye, O.O., Ullah, W., Agbi, B.: Does financial development really matter for poverty reduction in Africa? In: Forum for Social Economics, pp. 1–19. Routledge (2021b)

  • Boukhatem, J.: Assessing the direct effect of financial development on poverty reduction in a panel of low- and middle-income countries. Res. Int. Bus. Finance 37, 214–230 (2016). https://doi.org/10.1016/j.ribaf.2015.11.008

    Article  Google Scholar 

  • Brealey, R., Leland, H.E., Pyle, D.H.: Informational asymmetries, financial structure, and financial intermediation. J. Finance 32(2), 371–387 (1977)

    Article  Google Scholar 

  • Bhukuth, A., Roumane, A., Terrany, B.: Cooperative, human capital and poverty: a theoretical framework. Econ. Sociol. 11(2), 11–18 (2018)

    Article  Google Scholar 

  • Capasso, S.: Financial markets, development and economic growth: tales of informational asymmetries. J. Econ. Surv. 18(3), 267–292 (2004)

    Article  Google Scholar 

  • Chang, C.H., Lee, C.C.: Non-linearity between life insurance and economic development: a revisited approach. Geneva Risk Insur. Rev. 37(2), 223–257 (2012)

    Article  Google Scholar 

  • Chang, B.H., Rajput, S.K.O.: Do the changes in macroeconomic variables have a symmetric or asymmetric effect on stock prices? Evidence from Pakistan. South Asian J. Bus. Stud. 7(2), 312–331 (2018)

    Article  Google Scholar 

  • Chemli, L.: The nexus among financial development and poverty reduction: an application of ARDL approach from the MENA region. J. Econ. Dev. Stud. 2(4), 125–134 (2014). https://doi.org/10.15640/jeds.v2n4a9

    Article  Google Scholar 

  • Chen, H., Hongo, D.O., Ssali, M.W., Nyaranga, M.S., Nderitu, C.W.: The asymmetric influence of financial development on economic growth in Kenya: evidence from NARDL. SAGE Open 10(1), 2158244019894071 (2020)

    Article  Google Scholar 

  • Churchill, S.A., Marisetty, V.B.: Financial inclusion and poverty: a tale of forty-five thousand households. Appl. Econ. 52(16), 1777–1788 (2020)

    Article  Google Scholar 

  • Coulibaly, B.S. (2020). Foresight Africa: top priorities for the continent 2020 to 2030. Africa Growth Initiative, Brookings Institute. https://media.africaportal.org/documents/ForesightAfrica2020_2030.pdf

  • Danquah, M., Iddrisu, A.M., Ohemeng, W., Barimah, A.: Rural Financial Intermediation and Poverty Reduction in Ghana (No. wp-2020-2). World Institute for Development Economic Research (UNU-WIDER) (2020)

  • Das, P., Paria, B., Firdaush, S.: Juxtaposing consumption poverty and multidimensional poverty: a study in Indian context. Soc. Indic. Res. 153(2), 469–501 (2021). https://doi.org/10.1007/s11205-020-02519-0

    Article  Google Scholar 

  • DFID: Financial sector development: A pre-requisite for growth and poverty reduction? Policy Division, Department for International Development (DFID), London, June (2004)

  • de Haan, J., Pleninger, R., Sturm, J.E.: Does financial development reduce the poverty gap? Soc. Indic. Res. (2021). https://doi.org/10.1007/s11205-021-02705-8

    Article  Google Scholar 

  • Dhrifi, A.: Financial development and the “Growth-Inequality-Poverty” triangle. J. Knowl. Econ. 6(4), 1163–1176 (2015)

    Article  Google Scholar 

  • Dollar, D., Kraay, A.: Growth is good for the poor. J. Econ. Growth 7(3), 195–225 (2002). https://doi.org/10.1023/A:1020139631000

    Article  Google Scholar 

  • Dong, D., Gozgor, G., Lu, Z., Yan, C.: Personal consumption in the United States during the COVID-19 crisis. Appl. Econ. 53(11), 1311–1316 (2021). https://doi.org/10.1080/00036846.2020.1828808

    Article  Google Scholar 

  • Donou-Adonsou, F., Sylwester, K.: Financial development and poverty reduction in develo** countries: new evidence from banks and microfinance institutions. Rev. Dev. Finance 6(1), 82–90 (2016)

    Article  Google Scholar 

  • Ezzat, A.M., Ezzat, A.M.: Trade openness: an effective tool for poverty alleviation or an instrument for increasing poverty severity. In: Economic Research Forum Working Papers (No. 1248) (2018)

  • Fagbemi, F., Olufolahan, T.J.: Capital inflows, financial development and poverty reduction in Nigeria. Am. J. Res. (2019). https://doi.org/10.26739/2573-5616-2019-2-5

    Article  Google Scholar 

  • Fahrudi, A.N.: Alleviating poverty through social innovation. Australas. Account. Bus. Finance J. 14(1), 71–78 (2020)

    Article  Google Scholar 

  • Fan, S., Hazell, P., Thorat, S.: Government spending, growth and poverty in rural India. Am. J. Agr. Econ. 82(4), 1038–1051 (2000)

    Article  Google Scholar 

  • Fitriatinnisa, D., Khoirunurrofik, K.: Financial inclusion, poverty, inequality: empirical evidence from provincial in Indonesia. Econ. Dev. Anal. J. 10(2), 205–220 (2021)

    Article  Google Scholar 

  • Folarin, O., Adeniyi, O.: Does tourism reduce poverty in sub-Saharan African countries? J. Travel Res. 59(1), 140–155 (2020)

    Article  Google Scholar 

  • Fowowe, B., Abidoye, B.: The effect of financial development on poverty and inequality in African countries. Manch. Sch. 81(4), 562–585 (2013). https://doi.org/10.1111/j.1467-9957.2012.02302.x

    Article  Google Scholar 

  • Galadima, M.D., Aminu, A.W.: Nonlinear unit root and nonlinear causality in natural gas-economic growth nexus: evidence from Nigeria. Energy 190, 116415 (2020). https://doi.org/10.1016/j.energy.2019.116415

    Article  Google Scholar 

  • Gupta, R., Lahiani, A., Lee, C.C., Lee, C.C.: Asymmetric dynamics of insurance premium: the impacts of output and economic policy uncertainty. Empir. Econ. 57(6), 1959–1978 (2019)

    Article  Google Scholar 

  • Hassan, M.S., Bukhari, S., Arshed, N.: Competitiveness, governance and globalization: What matters for poverty alleviation? Environ. Dev. Sustain. 22(4), 3491–3518 (2020)

    Article  Google Scholar 

  • Hatemi-J, A., El-Khatib, Y.: Has the causal nexus of oil prices and consumer prices been asymmetric in the US during the last fifteen decades? Risk Factors Contag. Commod. Mark. Stocks Mark. (2020). https://doi.org/10.1142/9789811210242_0005

    Article  Google Scholar 

  • Hatemi-J, A., Mustafa, A.: A MS-Excel module to transform an integrated variable into cumulative partial sums for negative and positive components with and without deterministic trend parts. MPRA Paper No. 73813 (2016). https://mpra.ub.uni-muenchen.de/73813/

  • He, Z.: Dynamic impacts of crude oil price on Chinese investor sentiment: nonlinear causality and time-varying effect. Int. Rev. Econ. Financ. 66, 131–153 (2020)

    Article  Google Scholar 

  • Hicham, A.: Poverty reduction, financial development and economic growth in Algeria: a gregory hansen co-integration regime shift analysis. Econ. Res. Guard. 8(2), 40–52 (2018)

    Google Scholar 

  • Hicham, A., Mostefa, B., Eddin, S.H.S.: Frequency domain causality relationship analysis between poverty, economic growth and financial development in Algeria. Rev. Econ. Bus. Stud. 12(2), 93–111 (2019)

    Article  Google Scholar 

  • Ho, S.Y., Iyke, B.N.: Finance-growth-poverty nexus: a re-assessment of the trickle-down hypothesis in China. Econ. Chang. Restruct. 51(3), 221–247 (2018)

    Article  Google Scholar 

  • Ho, S.Y., Odhiambo, N.M.: Finance and poverty reduction in China: an empirical investigation. Int. Bus. Econ. Res. J. (IBER) 10(8), 103–114 (2011)

    Article  Google Scholar 

  • Holmes, M.J., Maghrebi, N.: Financial market impact on the real economy: an assessment of asymmetries and volatility linkages between the stock market and unemployment rate. J. Econ. Asymmetries 13, 1–7 (2016)

    Article  Google Scholar 

  • Ikizlerli, D., Holmes, P., Anderson, K.: The response of different investor types to macroeconomic news. J. Multinatl. Financ. Manag. 50, 13–28 (2019)

    Article  Google Scholar 

  • Inoue, T.: Financial development, remittances, and poverty reduction: empirical evidence from a macroeconomic viewpoint. J. Econ. Bus. 96, 59–68 (2018)

    Article  Google Scholar 

  • Inoue, T., Hamori, S.: How has financial deepening affected poverty reduction in India? Empirical analysis using state-level panel data. Appl. Financ. Econ. 22(5), 395–408 (2012)

    Article  Google Scholar 

  • Jali, M.R.M., Islam, G.M.N.: Assessment of the role of household empowerment in alleviating participatory poverty among rural household of Pakistan. Qual. Quant. 52(6), 2795–2814 (2018)

    Article  Google Scholar 

  • Jalilian, H., Kirkpatrick, C.: Financial development and poverty reduction in develo** countries. Int. J. Financ. Econ. 7(2), 97–108 (2002)

    Article  Google Scholar 

  • Jalilian, H., Kirkpatrick, C.: Does financial development contribute to poverty reduction? J. Dev. Stud. 41(4), 636–656 (2005)

    Article  Google Scholar 

  • Jeanneney, S.G., Kpodar, K.: Financial development and poverty reduction: Can there be a benefit without a cost? J. Dev. Stud. 47(1), 143–163 (2011)

    Article  Google Scholar 

  • Kaidi, N., Mensi, S., Amor, M.B.: Financial development, institutional quality and poverty reduction: worldwide evidence. Soc. Indic. Res. 141(1), 131–156 (2019)

    Article  Google Scholar 

  • Keho, Y.: Financial development and poverty reduction: evidence from selected African countries. Int. J. Financ. Res. 8(4), 90–98 (2017). https://doi.org/10.5430/ijfr.v8n4p90

    Article  Google Scholar 

  • Khan, M.B., Huobao, X., Saleem, H.: Direct impact of inflow of foreign direct investment on poverty reduction in Pakistan: a bonds testing approach. Econ. Res. 32(1), 3647–3666 (2019)

    Google Scholar 

  • Khan, R.E.A., Rehman, H., Abrar ul Haq, M.: Determinants of rural household poverty: the role of household socioeconomic empowerment. Am. Eurasian J. Agric. Environ. Sci. 15(1), 93–98 (2015)

    Google Scholar 

  • Kharas, H., Hamel, K., Hofer, M.: Rethinking global poverty reduction in 2019. Future Development blog series. The Brookings Institution, Washington, DC (2018). https://www.brookings.edu/blog/futuredevelopment/2018/12/13/rethinking-global-poverty-reduction-in-2019/

  • Kharas, H., Hamel, K., Hofer, M.: The Start of a New Poverty Narrative. Brookings Institution (2018b)

    Google Scholar 

  • Koomson, I., Villano, R.A., Hadley, D.: Effect of financial inclusion on poverty and vulnerability to poverty: evidence using a multidimensional measure of financial inclusion. Soc. Indic. Res. (2020). https://doi.org/10.1007/s11205-019-02263-0

    Article  Google Scholar 

  • Levine, R.: Finance and the poor. Manch. Sch. 76, 1–13 (2008)

    Article  Google Scholar 

  • Liu, W., Li, J., Zhao, R.: rural public expenditure and poverty alleviation in China: a spatial econometric analysis. J. Agric. Sci. 12(6), 46–56 (2020)

    Google Scholar 

  • Magombeyi, M.T., Odhiambo, N.M.: FDI inflows and poverty reduction in Botswana: an empirical investigation. Cogent Econ. Finance 6(1), 1480302 (2018)

    Article  Google Scholar 

  • Majid, M.S.A., Dewi, S., Kassim, S.H.: Does financial development reduce poverty? Empirical evidence from Indonesia. J. Knowl. Econ. 10(3), 1019–1036 (2019)

    Article  Google Scholar 

  • Mohamd Shoukry, A., Jabeen, M., Zaman, K., Gani, S., Aamir, A.: A note on poverty, growth, and inequality nexus: evidence from a panel of sub-Saharan African countries. Qual. Quant. 52(5), 2173–2195 (2018)

    Article  Google Scholar 

  • Mohanty, R.K.: An empirical investigation of twin deficits hypothesis: evidence from India. J. Quant. Econ. 17(3), 579–601 (2019)

    Article  Google Scholar 

  • Musakwa, M.T., Odhiambo, N.M.: The impact of remittance inflows on poverty in Botswana: an ARDL approach. J. Econ. Struct. 8(1), 1–13 (2019). https://doi.org/10.1186/s40008-019-0175-x

    Article  Google Scholar 

  • Musakwa, M.T., Odhiambo, N.M.: The causal relationship between remittance and poverty in South Africa: a multivariate approach. Int. Soc. Sci. J. (2021). https://doi.org/10.1111/issj.12260

    Article  Google Scholar 

  • Nadege, N.O., Ndjobo, P.M.N.: Analysis of the impact of education on poverty in cameroon: an application of the Nested Logit Model. Glob. J. Manag. Bus. Res. 20(6) 31–38 (2020)

  • Nandelenga, M.W., Oduor, J.: Asymmetric analysis of finance-Inequality nexus: evidence from sub-Saharan Africa. J. Econ. Asymmetries 22, e00184 (2020). https://doi.org/10.1016/j.jeca.2020.e00184

    Article  Google Scholar 

  • Ndlovu, G., Toerien, F.: The distributional impact of access to finance on poverty: evidence from selected countries in Sub-Saharan Africa. Res. Int. Bus. Finance 52, 101190 (2020). https://doi.org/10.1016/j.ribaf.2020.101190

    Article  Google Scholar 

  • Nguyen, C.P., Su, T.D.: Financing the economy: the multidimensional influences of financial development on economic complexity. J. Int. Dev. (2021a). https://doi.org/10.1002/jid.3541

    Article  Google Scholar 

  • Nguyen, C.P., Su, T.D.: Export quality dynamics: multidimensional evidence of financial development. World Econ. (2021b). https://doi.org/10.1111/twec.13103

    Article  Google Scholar 

  • Nguyen, C.P., Su, T.D., Doytch, N.: The drivers of financial development: global evidence from internet and mobile usage. Inf. Econ. Policy 53, 100892 (2020). https://doi.org/10.1016/j.infoecopol.2020.100892

    Article  Google Scholar 

  • Ntembe, A., Amin, A.A., Tawah, R.: Analysis of public investments and economic growth in Cameroon. J. Econ. Finance 42(3), 591–614 (2018)

    Article  Google Scholar 

  • Odhiambo, N.M.: Is financial development a spur to poverty reduction? Kenya’s experience. J. Econ. Stud. 37(3), 343–353 (2010a)

    Article  Google Scholar 

  • Odhiambo, N.M.: Financial deepening and poverty reduction in Zambia: an empirical investigation. Int. J. Soc. Econ. 37(1), 41–53 (2010b)

    Article  Google Scholar 

  • Odhiambo, N.M.: Finance-growth-poverty nexus in South Africa: a dynamic causality linkage. J. Socio-Econ. 38, 320–325 (2009)

    Article  Google Scholar 

  • Ofori, I.K., Armah, M.K., Taale, F., Ofori, P.E.: Addressing the severity and intensity of poverty in Sub-Saharan Africa: How relevant is the ICT and financial development pathway? Heliyon 7(10), e08156 (2021)

    Article  Google Scholar 

  • Olaniyi, C.O.: Asymmetric information phenomenon in the link between CEO pay and firm performance: an innovative approach. J. Econ. Stud. 46(2), 306–323 (2019). https://doi.org/10.1108/JES-11-2017-0319

    Article  Google Scholar 

  • Olaniyi, C.O.: Application of bootstrap simulation and asymmetric causal approach to fiscal deficit-inflation nexus. Glob. J. Emerg. Mark. Econ. 12(2), 123–140 (2020). https://doi.org/10.1177/0974910120919021

    Article  Google Scholar 

  • Olayeni, R.O., Tiwari, A.K., Wohar, M.E.: Fractional frequency flexible Fourier form (FFFFF) for panel cointegration test. Appl. Econ. Lett. (2020). https://doi.org/10.1080/13504851.2020.1761526

    Article  Google Scholar 

  • Olaniyi, C.O., Adedokun, A.: Finance-institution-growth trilogy: time-series insights from South Africa. Int. J. Emerg. Mark. Vol. ahead-of-print No. ahead-of-print (2020). https://doi.org/10.1108/IJOEM-05-2019-0370

  • Olaniyi, C.O., Oladeji, S.I.: Interplay between financial sector and institutional framework in the economic growth process of Kenya. J. Public Aff. (2020). https://doi.org/10.1002/pa.2562

    Article  Google Scholar 

  • Olaniyi, C.O., Olayeni, O.R.: A new perspective into the relationship between CEO pay and firm performance: evidence from Nigeria’s listed firms. J. Soc. Econ. Dev. (2020). https://doi.org/10.1007/s40847-020-00103-3

    Article  Google Scholar 

  • Olohunlana, A.O., Dauda, R.O.S.: Implications of financial development on poverty and inequality: evidence from Nigeria. Rom. Econ. J. 22(71), 42–59 (2019)

    Google Scholar 

  • Olopade, B.C., Okodua, H., Oladosun, M., Asaleye, A.J.: Human capital and poverty reduction in OPEC member-countries. Heliyon 5(8), e02279 (2019)

    Article  Google Scholar 

  • Omar, M.A., Inaba, K.: Does financial inclusion reduce poverty and income inequality in develo** countries? A panel data analysis. J. Econ. Struct. 9, 1–25 (2020). https://doi.org/10.1186/s40008-020-00214-4

    Article  Google Scholar 

  • Onakoya, A., Johnson, B., Ogundajo, G.: Poverty and trade liberalization: empirical evidence from 21 African countries. Econ. Res. 32(1), 635–656 (2019)

    Google Scholar 

  • Onwuka, I.O., Nwadiubu, A.: Effect of financial sector development on poverty alleviation-the Nigerian experience (1986–2018). Adv. Soc. Sci. Res. J. 6(6), 39–51 (2019)

    Google Scholar 

  • Osinubi, T.S.: Macroeconometric analysis of growth, unemployment and poverty in Nigeria. Pak. Econ. Soc. Rev. 43(2), 249–269 (2005)

    Google Scholar 

  • Otero, J., Smith, J.: Response surface models for OLS and GLS detrending-based unit-root tests in nonlinear ESTAR models. Stand. Genom. Sci. 17(3), 704–722 (2017)

    Google Scholar 

  • Parewangi, A.M.A., Iskandar, A.: The nexus of Islamic finance and poverty. Hitotsubashi J. Econ. 61(2), 111–139 (2020)

  • Perez-Moreno, S.: Financial development and poverty in develo** countries: a causal analysis. Empir. Econ. 41(1), 57–80 (2011)

    Article  Google Scholar 

  • Pradhan, B.K., Mahesh, M.: Impact of trade openness on poverty: a panel data analysis of a set of develo** countries. Econ. Bull. 34(4), 2208–2219 (2014)

    Google Scholar 

  • Rashid, A., Intartaglia, M.: Financial development – does it lessen poverty? J. Econ. Stud. 44(1), 69–86 (2017). https://doi.org/10.1108/jes-06-2015-0111

    Article  Google Scholar 

  • Rehman, I.U., Shahbaz, M.: Multivariate-based Granger causality between financial deepening and poverty: the case of Pakistan. Qual. Quant. 48(6), 3221–3241 (2014)

    Article  Google Scholar 

  • Rewilak, J.: The role of financial development in poverty reduction. Rev. Dev. Finance 7(2), 169–176 (2017)

    Article  Google Scholar 

  • Saidu, I., Marafa, A.A.: The effect of financial sector development on poverty reduction in Nigeria: an empirical investigation. Int. J. Econ. Financ. Issues 10(4), 9–17 (2020)

    Article  Google Scholar 

  • Salcedo, A.M., Llanes, G.I.: Drawing the optimal monetary poverty lines based on empirical data: an application to Spain. Qual. Quant. 53(1), 513–527 (2019)

    Article  Google Scholar 

  • Sehrawat, M., Giri, A.K.: Financial development, poverty and rural-urban income inequality: evidence from South Asian countries. Qual. Quant. 50(2), 577–590 (2016)

    Article  Google Scholar 

  • Sehrawat, M., Giri, A.K.: The impact of financial development, economic growth, income inequality on poverty: evidence from India. Empir. Econ. 55(4), 1585–1602 (2018)

    Article  Google Scholar 

  • Seven, U., Coskun, Y.: Does financial development reduce income inequality and poverty? Evidence from emerging countries. Emerg. Mark. Rev. 26, 34–63 (2016)

    Article  Google Scholar 

  • Shahbaz, M.: Financial performance and earnings of poor people: a case study of Pakistan. J. Yaşar Univ. 4(16), 2557–2572 (2009)

    Google Scholar 

  • Shahbaz, M., Van Hoang, T.H., Mahalik, M.K., Roubaud, D.: Energy consumption, financial development and economic growth in India: new evidence from a nonlinear and asymmetric analysis. Energy Econ. 63, 199–212 (2017)

    Article  Google Scholar 

  • Shahbaz, M., Khraief, N., Czudaj, R.L.: Renewable energy consumption-economic growth nexus in G7 countries: new evidence from a nonlinear ARDL approach. Econ. Bull. 40(4), 2828–2843 (2020)

    Google Scholar 

  • Shin, Y., Yu, B., Greenwood-Nimmo, M.: Modelling asymmetric cointegration and dynamic multipliers in a nonlinear ARDL framework. In: Sickles, R., Horrace, W. (eds.) Festschrift in Honor of Peter Schmidt, pp. 281–314. Springer, New York, NY (2014). https://doi.org/10.1007/978-1-4899-8008-3_9

  • Siddique, M.A., Haq, M., Rahim, M.: The Impact of the islamic banking industry on economic growth and poverty reduction in Pakistan. In: Elzahi Saaid Ali, A., Ali, K., Hassan Azrag, M. (eds.) Enhancing Financial Inclusion through Islamic Finance, Volume II (pp. 259–279). Palgrave Studies in Islamic Banking, Finance, and Economics. Palgrave Macmillan, Cham. (2020) https://doi.org/10.1007/978-3-030-39939-9_11

  • Simmons, K.: Sub-Saharan Africa makes progress against poverty but has long way to go. Pew Research Center Factbook. Pew Research Center, Washington, DC, USA, 3 (2015). http://www.pewresearch.org/fact-tank/2015/09/24/sub-saharan-africa-makes-progress-against-poverty-but-has-long-way-to-go/

  • Singh, R.J., Huang, Y.: Financial deepening, property rights, and poverty: evidence from Sub-Saharan Africa. J. Bank. Financ. Econ. 1(3), 130–151 (2015)

    Article  Google Scholar 

  • Solarin, S.A., Gil-Alana, L.A., Gonzalez-Blanch, M.J.: Fractional persistence in income poverty in Africa. Soc. Indic. Res. (2021). https://doi.org/10.1007/s11205-021-02614-w

    Article  Google Scholar 

  • Spence, M.: Job market signalling. Quart. J. Econ. 87, 355–374 (1973)

    Article  Google Scholar 

  • Stiglitz, J.: Incentives and risk sharing in sharecrop**. Rev. Econ. Stud. 41, 219–255 (1974)

    Article  Google Scholar 

  • Stiglitz, J.E.: The role of the state in financial markets. World Bank Econ. Rev. 7(suppl_1), 19–52 (1993)

    Article  Google Scholar 

  • Stiglitz, J.: The role of the state in financial markets. In: Proceedings of the World Bank Annual Conference on Development Economic, pp. 19–52 (1998)

  • Stiglitz, J.E., Weiss, A.: Credit rationing in markets with imperfect information. Am. Econ. Rev. 71(3), 393–410 (1981)

    Google Scholar 

  • Svirydzenka, K.: Introducing a New Broad-Based Index of Financial Development. International Monetary Fund. IMF Working paper No.16/5 (2016)

  • Todaro, M.: Economic Development. Addison Wesley Longman LTD, New York (1997)

    Google Scholar 

  • Tiwari, A.K., Olayeni, R.O., Chang, Y.C., Chang, T.: The hydroelectricity consumption and economic growth in Asian countries-evidence using an asymmetric cointegration approach. Appl. Econ. (2020). https://doi.org/10.1080/00036846.2020.1730755

    Article  Google Scholar 

  • Tchamyou, V.S.: The role of information sharing in modulating the effect of financial access on inequality. J. Afr. Bus. 20(3), 317–338 (2019)

    Article  Google Scholar 

  • Tsaurai, K.: Economic growth-financial development-poverty nexus in emerging markets. Int. J. Serv. Econ. Manag. 12(1), 93–108 (2021)

    Google Scholar 

  • Uddin, G.S., Shahbaz, M., Arouri, M., Teulon, F.: Financial development and poverty reduction nexus: a cointegration and causality analysis in Bangladesh. Econ. Model. 36, 405–412 (2014). https://doi.org/10.1016/j.econmod.2013.09.049

    Article  Google Scholar 

  • Ullah, S., Majeed, M.T., Chishti, M.Z.: Examining the asymmetric effects of fiscal policy instruments on environmental quality in Asian economies. Environ. Sci. Pollut. Res. (2020). https://doi.org/10.1007/s11356-020-09859-x

    Article  Google Scholar 

  • World Bank: World Development Report 2000/2001. Oxford University Press, New York (2001)

    Google Scholar 

  • World Bank: Poverty and shared prosperity 2016: taking on inequality. World Bank Group, Washington, DC (2016). https://openknowledge.worldbank.org/bitstream/handle/10986/25078/9781464809583.pdf

  • World Bank Group: Year in review: 2018 in 14 charts (2018). https://www.worldbank.org/en/news/feature/2018/12/21/year-in-review-2018-in-14-charts

  • World Economic Forum: Three things Nigeria must do to end extreme poverty (2019). https://www.weforum.org/agenda/2019/03/90-million-nigerians-live-in-extreme-poverty-here-are-3-ways-to-bring-them-out/

  • Wright, W.: How trade openness can help to ‘deliver the poor and needy.’ Econ. Aff. 40(1), 100–107 (2020)

    Article  Google Scholar 

  • Yomi, K.: Nigeria has become the poverty capital of the world (2018). Retrieved from Quartz Africa: https://qz.com/africa/1313380/nigerias-has-the-highest-rate-of-extreme-poverty-globally

  • You, K., Bianco, S.D., Amankwah-Amoah, J.: Closing technological gaps to alleviate poverty: evidence from 17 sub-Saharan African countries. Technol. Forecast. Soc. Chang. 157, 120055 (2020). https://doi.org/10.1016/j.techfore.2020.120055

    Article  Google Scholar 

  • Young, A.O.: Why has growth not trickled down to the poor: a study of Nigeria. Rev. Eur. Stud. 11(1), 156–174 (2019). https://doi.org/10.5539/res.v11n1p156

    Article  Google Scholar 

  • Zahonogo, P.: Financial development and poverty in develo** countries: evidence from sub-Saharan Africa. Int. J. Econ. Financ. 9(1), 211–220 (2017)

    Article  Google Scholar 

  • Zameer, H., Shahbaz, M., Vo, X.V.: Reinforcing poverty alleviation efficiency through technological innovation, globalization, and financial development. Technol. Forecast. Soc. Change 161, 120326 (2020). https://doi.org/10.1016/j.techfore.2020.120326

    Article  Google Scholar 

  • Zaman, K., Khilji, B.A.: A note on pro-poor social expenditures. Qual. Quant. 48(4), 2121–2154 (2014)

    Article  Google Scholar 

  • Zhang, R., Naceur, S.B.: Financial development, inequality, and poverty: some international evidence. Int. Rev. Econ. Financ. 61, 1–16 (2019)

    Article  Google Scholar 

  • Zulher, Z., Ratnasih, C.: Financial development and poverty reduction in develo** countries. Accounting 7(3), 667–674 (2021)

    Article  Google Scholar 

Download references

Acknowledgements

The authors acknowledge the professionalism of the editorial crew and treasure the objective suggestions and comments of the anonymous referees which have ameliorated the quality of this paper. The usual disclaimer applies.

Funding

This study received funding, with the Project Number IBR_RF205, from the Institute of Business Research, University of Economics Ho Chi Minh City, Ho Chi Minh City, Vietnam.

Author information

Authors and Affiliations

  1. Department of Economics, Obafemi Awolowo University, Ile-Ife, Nigeria

    Clement Olalekan Olaniyi & James Temitope Dada

  2. Institute of Business Research, University of Economics Ho Chi Minh City, Ho Chi Minh City, Vietnam

    Clement Olalekan Olaniyi & Xuan Vinh Vo

  3. Department of Economics, University of South Africa (UNISA), Pretoria, South Africa

    Nicholas Mbaya Odhiambo

  4. CFVG, University of Economics Ho Chi Minh City, Ho Chi Minh City, Vietnam

    Xuan Vinh Vo

Authors
  1. Clement Olalekan Olaniyi
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. James Temitope Dada
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Nicholas Mbaya Odhiambo
    View author publications

    You can also search for this author in PubMed Google Scholar

  4. Xuan Vinh Vo
    View author publications

    You can also search for this author in PubMed Google Scholar

Contributions

All authors contributed equally to the work.

Corresponding author

Correspondence to Clement Olalekan Olaniyi.

Ethics declarations

Conflict of interest

The authors declare that they have no conflict of interest.

Consent for publication

The permission is expressly given.

Additional information

Publisher's Note

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Olaniyi, C.O., Dada, J.T., Odhiambo, N.M. et al. Modelling asymmetric structure in the finance-poverty nexus: empirical insights from an emerging market economy. Qual Quant 57, 453–487 (2023). https://doi.org/10.1007/s11135-022-01363-3

Download citation

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11135-022-01363-3

Keywords

JEL Classification

Search

Navigation