Local Financial Institutions and Income Inequality
Evidence from Brazil's Credit Cooperative Movement
Bibliographic Data
| ID | 3884314 |
|---|---|
| Authors | Philip Arestis (0000-0001-8729-4846), Peter Phelps (0000-0003-2564-3144, corresponding author) |
| Year | 2023 |
| Volume | 54 |
| Issue | 4 |
| Pages | 739-779 |
| Publication date | 2023-07-01 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Development and Change (JOURNAL) |
| Journal identifiers | ISSN: 0012-155X • E-ISSN: 1467-7660 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1111/dech.12780 |
| OpenAlex | W4386399446 |
| Language | EN |
| Citations received | 1 |
| References cited | 41 |
Local financial institutions can play a crucial role in reducing income inequalities at the within-country level by promoting inclusive economic growth and development across time and space. This is against a backdrop of increasing financial and economic fragility, to which emerging economies have also been exposed over more recent decades and years. This article adds emerging economy evidence from Brazil to an empirical literature on the income inequality implications of cooperative financial institutions. Panel-data estimations for 2004-19 reveal that Brazilian credit cooperatives have gone beyond commercial banks in supporting communities that have traditionally been underserved financially. Additionally, the article provides new evidence and insights on credit cooperatives' resilience in the context of a relatively recent but severe economic crisis in Brazil. The results indicate that credit cooperatives have helped fill gaps in finance and economic opportunity that tend to arise in an emerging economy setting. Furthermore, the contribution of credit cooperatives in filling these gaps is found to be more significant at lower levels of development. These findings add theoretical and, importantly, empirical support to the relationship channel of financial inclusion, which is in line with the optimistic perspective in this debate
Context (archaeology) · Development economics · Economic inequality · Economics · Emerging markets · Empirical evidence · Financial crisis · Financial fragility · Financial inclusion · Financial services · Inequality · Macroeconomics · Banking stability, regulation, efficiency · Finance · Housing, Finance, and Neoliberalism · Microfinance and Financial Inclusion
A Theory of Trickle-Down Growth and Development
Approximating the bias of the LSDV estimator for dynamic unbalanced panel data models
Generalized reduced rank tests using the singular value decomposition
A more complete conceptual framework for SME finance
On bias, inconsistency, and efficiency of various estimators in dynamic panel data models
How to do Xtabond2
Large Sample Properties of Generalized Method of Moments Estimators
Initial conditions and moment restrictions in dynamic panel data models
Finance, inequality and the poor
Rural credit markets and institutions in developing countries
O papel da migração internacional na evolução da população brasileira (1872 a 1972)
Cooperative banks and local economic growth
Banks and Regional Development
Financial Development, Growth, and the Distribution of Income
A panel analysis of Brazilian regional inequality
Immigration to Brazil
Banking structure, economic resilience and unemployment trajectories in US counties during the great recession
| Citations per year | 1 |
|---|---|
| Citation span | 2025 - 2025 (1) |
| Highly cited | No |