Effect of financial development towards poverty reduction in Argentina/ Nooratiqah Mohd Zaid

This paper provides evidence on the link between financial development and poverty reduction in Argentina. Financial development consist of five element which are access, depth and profitability . This paper will be using depth of financial institution in reducing poverty. Previous study, they focusing on bank and stock market development. In this study, it will focusing on what extent banks reduce poverty. A large body of evidence suggest that financial development able to promotes economic youth through capital accumulation and technological progress by increasing saving rate, pooling saving and encourage inflow of foreign capital. For the past three years under Argentina president Mauricio Macri, the level of poverty increase by 5%. The poverty level rose from 29% at the end of last year to 34.5% by mid-March. Using a scope from Argentina from year 1980 until 2014. Broad money to GDP, private sector to GDP and domestic credit to private sector will be using as independent variable of financial development while population will be using as dependent variable as proxy for poverty reduction.