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AEC 2008 - Financial Sector Development, Gender Parity, and Poverty Reduction: Theoretical and Empirical Evidences


This paper evaluates the impact of financial sector development on poverty decomposed by gender, in rural Cameroon. Several works have highlighted the impact that financial sector development could have on economic growth and poverty reduction. The incorporation of gender considerations in this paper helps to fine-tune the targeting of the effects. In this regard, a decomposition of effects was undertaken, notably income growth effects on male and female heads of household and inter-gender income inequality effects. We arrive at the conclusion that financial sector development produces a positive impact on income growth for both male and female heads of household, and reduces inter-gender inequalities. However, the impact on income growth and inequalities is non-linear. The paper further concludes that financial sector development produces a positive but nonlinear impact on gender inequality and poverty reduction in rural Cameroon.

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