Financial crises have detrimental impacts on the economy via depressed economic growth and rising unemployment, however, their impact on the poorest in society is relatively under-researched. This paper investigates the impact of three different types of financial crises on the income of the poor. Using a variety of estimation techniques and controlling for a lagged dependent variable, the results suggest that currency crises are the most harmful to the poor, followed by banking crises. Debt crises only have a statistically significant effect on the income of the poor in richer countries.
Bibliographical note© 2017 The Authors Journal of International Development Published by John Wiley & Sons Ltd. This is an open access article under the terms of the Creative Commons Attribution License, which permits use, distribution and reproduction in any medium, provided the original work is properly cited.
Funding: ESRC-DFID grant number ES/J009067/1.
- financial development; financial crises; poverty reduction