Do rural banks matter that much? Burgess and Pande (2005) reconsidered
| Autor: | PhDr. Jaromír Baxa Ph.D., Nino Buliskeria , |
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| Typ: | Články v impaktovaných časopisech |
| Rok: | 2022 |
| Číslo: | 0 |
| ISSN / ISBN: | |
| Publikováno v: | Journal of Applied Econometrics |
| Místo vydání: | |
| Klíčová slova: | access to finance, finance and development, rural poverty |
| JEL kódy: | |
| Citace: | |
| Granty: | GAČR č. 20-14990S: Hospodářská politika v nejistých časech (podán v březnu 2019) GAUK 1034519: Finanční rozvoj a příjmová nerovnost UNCE Doctoral Fellowship |
| Abstrakt: | We replicate Burgess and Pande's (2005) analysis of the effect of India's state-led bank expansion on poverty. The authors instrument rural bank branch expansion by its trend reversal explained by the 1977 licensing rule and find that the bank expansion decreased poverty. However, the authors do not consider other licensing rule amendments and concurrent policies. Thus, their instrument is not necessarily exogenous to poverty. We show that the significant effect of bank expansion on poverty disappears after summarizing the trend reversal with more breaks linked to the bank licensing policy. |
