Financial crisis in asia: Its genesis, severity and impact on poverty and hunger
Journal of International Development
University of Manchester, Manchester, United Kingdom; University of Delhi, Delhi, India; IFAD, Rome, Italy; University of Cape Coast, Cape Coast, Ghana
Building on the recent literature on finance, growth and hunger, we have examined the experience of Asian countries over the period 1960-2010 by dynamic and static panel data models. We have found evidence favouring a positive role of finance-defined as private credit by banks-on growth of GDP and agricultural value added. Private credit as well as loans from the World Bank significantly reduces undernourishment, whereas remittances and loans from microfinance institutions appear to have a negative impact on poverty. Our empirical evidence shows that growth performance was significantly lower during the recent global financial crisis than non-crisis periods, although the severity is much smaller during the recent financial crisis than Asian financial crisis. © 2013 John Wiley & Sons, Ltd.
agriculture; credit provision; economic development; empirical analysis; financial crisis; Gross Domestic Product; hunger; lending behavior; panel data; poverty; Asia
ESRC, Economic and Social Research Council