Date of Award
Master of Science
The purpose of this paper is to investigate the effect of financial development on poverty reduction in a dual banking system in Indonesia. We focused on comparing the impact of financial development, credit and deposit, both in conventional banks to Islamic banks as to what extent each contributes to poverty reduction in Indonesia using panel data in province level covering 33 provinces over the period of 2010-2018. We employed a fixed effects model as our empirical method to see the different effects of credit and deposit both in conventional and Islamic banks on reducing poverty in Indonesia. We found that credits in Islamic banks are more strongly correlated, especially for poverty gap and poverty severity measures, with poverty reduction in Indonesia compared to its counterpart. Whereas, for deposit, conventional banks showed more pro-poor than Islamic banks.
This thesis is only available for download to the SIUC community. Current SIUC affiliates may also access this paper off campus by searching Dissertations & Theses @ Southern Illinois University Carbondale from ProQuest. Others should contact the interlibrary loan department of your local library or contact ProQuest's Dissertation Express service.