Does Financial Development Alleviate Poverty? Empirical Evidence from Indonesia

This study examines the contribution of financial development to poverty reduction in Indonesia using autoregressive distributed lag (ARDL) bound testing approach cointegration framework. It also employs annual data several measures such as domestic credit, broad money, and indexes from 1986 2018. Our findings suggest that have a relationship, regardless indicators used. Furthermore, we find institution depth, market access, efficiency reduced poverty. suggests through its indirect channel, i.e., economic growth effect.