Desenvolvimento do sistema financeiro e pobreza no Brasil: uma análise multivariada

In recent decades, several studies have emphasized the relationship between the development of the financial system and economic growth. Theoretical and empirical analyzes suggest that the development of the financial system has a positive effect on the rate of economic growth, generating impacts on income growth and reducing poverty rates. This study investigated the effectiveness of the development of the financial system as a tool for promoting economic growth, increase income and reduce poverty, using data from the Brazilian states from 1995 to 2008. We employ canonical correlation in order to confront the theoretical predictions with the empirical behavior of the variables of interest over time. The results show that the development of the financial system has demonstrated a good predictive power of the variance of the compounds of variables related to income and poverty.