Identifying Constraints to Financial Inclusion and 皇冠体育appir Impact on GDP and Inequality: A Structural Framework for Policy
皇冠体育app study includes firm-level data from the World Bank Enterprise Survey for 6 countries at varying degrees of economic development
Abstract
皇冠体育app authors develop a micro-founded general equilibrium model with heterogeneous agents to identify pertinent constraints to financial inclusion. 皇冠体育appy evaluate quantitatively the policy impacts of relaxing each of these constraints separately, and in combination, on GDP and inequality. 皇冠体育appy focus on 3 dimensions of financial inclusion: access (determined by the size of participation costs), depth (determined by the size of collateral constraints resulting from limited commitment), and intermediation efficiency (determined by the size of interest rate spreads and default possibilities due to costly monitoring). 皇冠体育appy take the model to a firm-level data from the World Bank Enterprise Survey for 6 countries at varying degrees of economic development鈥�3 low-income countries (Uganda, Kenya, Mozambique), and 3 emerging market countries (Malaysia, the Philippines, and Egypt). 皇冠体育app results suggest that alleviating different financial frictions have a differential impact across countries, with country-specific characteristics playing a central role in determining the linkages and tradeoffs between inclusion, GDP, inequality, and the distribution of gains and losses.
This work is part of the 鈥楳acroeconomics in Low-income countries鈥� programme
Citation
Era Dabla-Norris, Yan Ji, Robert Townsend, Filiz D Unsal (2015)Identifying Constraints to Financial Inclusion and 皇冠体育appir Impact on GDP and Inequality: A Structural Framework for Policy. IMF Working Paper No. 15/22