EFFECT OF FINANCIAL ACCESS AND INSTITUTIONAL QUALITY ON POVERTY: EMPIRICAL EVIDENCE FROM SUB-SAHARAN AFRICA

Year 2025, Volume: 9 Issue: 2, 120 - 139, 21.10.2025

Shehu Bijimi Umaru , Martins Iyoboyi , Abdulsalam S. Ademola

Abstract

Deploying the two-step system Generalized Method of Moments, this study examined the impact of financial access and institutional quality on poverty in a panel of 32 countries in sub-Saharan Africa from 2000 to 2023. Financial access was found to reduce poverty in sub-Saharan Africa under the period of investigation. Additionally, the effect of the interaction of financial access and institutional quality was negative, implying a reduction in poverty. The study recommends improved financial access through the establishment of more bank branches and Automated Teller Machines especially to remote areas, including enhanced institutions through intensifying the fight on corruption in the sub-region.

Keywords

Financial access , Institutional quality , Poverty , sub-Saharan Africa , System GMM

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