The literature on the theoretical and empirical aspects of the relationship between finance and economic growth is both substantial and extensive. The same cannot be said on the relationship between financial development and poverty reduction-an equally important aspect. In this study, we visit...

This paper extends Boyd and Smith's (1997) two-country model to analyze the roles of financial factors as a source of poverty traps in open economies. Our basic model is a dynamic, open economy model embedded with international credit markets. We assume that firms across countries face an...

The recent financial crisis has shown that financial innovation can have devastating systemic impacts. International standard setters' and national regulators' response has been a global concerted effort to overhaul and tighten financial regulations. However, at a time of designing stricter...