Dr Svetlana Andrianova, University of Leicester
Start: Sep 2012 | End: Mar 2016
DEGRP report: Finance for Development
Working paper: Finance and Poverty: evidence from India
Working paper: Financial liberalization and income inequality: channels and cross-country evidence
Working paper: Ethnic Fractionalization, Governance and Loan Defaults in Africa
Working paper: Loan Defaults in Africa
Journal article: Finance is good for the poor but it depends where you live
Journal article: Monetization, Financial Development, and Growth: Time Series Evidence from 22 Countries in Sub-Saharan Africa
Journal article: Revisiting the institutions–growth nexus in developing countries: The new evidence
Journal article: Financial Literacy And Financial Behaviour: Experimental Evidence From Rural Rwanda
Journal article: Why Do African Banks Lend So Little?
Journal article: Credit Booms, Financial Fragility and Banking Crises
Journal article: Capital Account Liberalization and Income Inequality
Journal article: The changing face of financial development
Vox EU article: A new international database on financial fragility
Although the recent financial crisis led to suggestions that there can be too much finance, many Low Income Countries (LICs) remain financially under-developed. In Sub-Saharan Africa, banks continue to lend little domestically, and even where financial development has taken place, its effects on the poor are generally unknown. By analysing the linkages between politics, finance and growth in Sub-Saharan Africa, this project aims to explain how finance can help promote pro-poor economic growth in LICs.
The project seeks to analyse the causes of financial under-development. It will use appropriate methods and data focusing on:
- determinants of high loan default in Sub-Saharan Africa;
- the role of incumbent financiers in deterring new firms’ entry;
- the role of natural resources on financial development.
It also aims to re-examine key aspects of the finance-growth relationship by analysing the consequences of banks’ opportunistic behaviour on financial instability, and the effect of different types of financial reforms on bank soundness. A new measure of banking fragility constructed under the project will help determine if increased fragility explains the recent weakening of the finance-growth relationship.