The Empirical Analysis Of Asian Financial Development And Poverty Reduction

After the global financial crisis broke out, countries have different degrees of economic recession.The phenomenon of rapid financial development and the lack of stability have become a controversialissue. At the same time, the economic recession is also accompanied by increases of poverty problems. InAsia, most of the developing countries’ financial sector reforms following the Asian financial crisis,improves the region’s resiliency against external shocks as proven in the wake of the global financialcrisis and has minimal damage in the five continents. However, the Asian financial system, especially inpoverty support areas, still has some big problems. Such as the financial system lack diversity, the capitalmarket not fully developed, and low availability of financial services. This series of issues would affectthe efforts of poverty support.In academia,there is not much research about the relationship between the degree of financialdevelopment and poverty. In this paper, I choose the panel data containing35countries of Asia from2000to2011and use infant mortality as an indicator of poverty for empirical study.The conclusion is that therehas negative correlation between the degree of financial development and poverty:the higher level offinancial development cause the lower level of poverty. Based on this conclusion, we can reduce thepoverty through developing finance. This paper also gives some recommendations for solving theproblems of poverty and financial development in Asia combined with the empirical results.’...