Advertisement

Determinants of Financial Inclusion: The Case of 125 Countries from 2004 to 2017

Conference paper
  • 621 Downloads
Part of the Springer Proceedings in Business and Economics book series (SPBE)

Abstract

This paper attempts to investigate the effects of GDP growth, GDP per capita, inflation rate and interest rate spread on financial inclusion. Financial inclusion has been measured by account ownership at a financial institution for ages 15+ and for ages 25+, automated teller machines and depositors with commercial banks. This has been conducted using a sample of 145 countries, over the period from the 2004 to 2017. Results indicate that GDP per capita may have a significant positive effect on financial inclusion, while each of GDP growth, and interest rate spread may have a significant negative effect. Besides, inflation rate seems to have no significant effect on financial inclusion. Moreover, robustness check assures these findings.

Keywords

Financial inclusion GMM technique Panel analysis 

References

  1. Alber, N. (2019). Financial Inclusion, Stability, Integrity and Protection (I-SIP). Available at SSRN https://ssrn.com/abstract=3335904.
  2. Amidžić, G., Massara, A., & Mialou, A. (2014). Assessing countries’ financial inclusion standing: A new composite index. International Monetary Fund Working Paper, No. 14/36, Washington, D. C.Google Scholar
  3. Bakar, H., & Sulong, Z. (2018). The role of financial inclusion on economic growth: Theoretical and empirical literature review analysis. Journal of Business & Financial Affairs, 7(4), 356.CrossRefGoogle Scholar
  4. Cámara, N., & Tuesta, D. (2014). Measuring financial inclusion: A multidimensional index. BBVA Working Paper, No. 14/26.Google Scholar
  5. Damodaran, A. (2013). Financial inclusion: Issues and challenges. Department of Management Studies. Indian Institute of Technology. Available at https://www.researchgate.net/publication/309194840.
  6. Demirguc-Kunt, A., & Klapper, L. (2012). Measuring financial inclusion: The global Findex database. World Bank Policy. Available at www-wds.worldbank.org/external/default/WDSContentServer/IW3P/IB/2012/04/19/000158349.
  7. Demirgüç-Kunt, A., Beck, T., & Honohan, P. (2008). Finance for all? Policies and pitfalls in expanding access. World Bank Policy Research Report. Available at http://go.worldbank.org/HNKL9ZHO50.
  8. GPFI. (2011). Global standard-setting bodies and financial inclusion for the poor: Toward proportionate standards and guidance. Available at http://gpfi.org/knowledge-bank/white-papers/global-standard-setting-bodies-and-financial-inclusion-poor.
  9. Hannig, A., & Jansen, S. (2010). Financial inclusion and financial stability: Current policy issues. ADBI Working Paper 259. Tokyo: Asian Development Bank Institute. Available at http://www.adbi.org/working-paper/2010/12/21/4272.
  10. Inoue, T. (2018). Financial inclusion and poverty reduction in India. Journal of Financial Economic Policy.Google Scholar
  11. Neaime, S., & Gaysset, I. (2018). Financial inclusion and stability in MENA: Evidence from poverty and inequality. Finance Research Letters, 24(C), 230–237.Google Scholar
  12. Nsanzabaganwa, M. (2014). Financial inclusion, stability, integrity and consumer protection: Harnessing synergies, managing trade-offs. National Bank of Rwanda, Economic Review, 6, 1–18.Google Scholar
  13. Sarma, M. (2010). Index of financial inclusion. Discussion Paper No. 10–05. New Delhi, India: Centre for International Trade and Development (CITD), Jawaharlal Nehru University.Google Scholar
  14. Sarma, M. (2008). Index of financial inclusion. Indian Council for Research on International Economic Relations Working Paper, No. 215.Google Scholar
  15. Sethi, D., & Acharya, D. (2018). Financial inclusion and economic growth linkage: Some cross-country evidence. Journal of Financial Economic Policy, 10, 369–385.CrossRefGoogle Scholar
  16. Sharma, A., & Kukreja, S. (2013). An analytical study: Relevance of financial inclusion for developing nations. International Journal of Engineering and Science, 2(4), 15–20.Google Scholar
  17. Shettar, R. (2016). Financial inclusion. An Overview, 18(2), 37–44.Google Scholar
  18. Singh, N. (2017). Financial inclusion: Concepts, issues and policies for India. In India Development Policy Conference. New Delhi. Available at https://mpra.ub.uni-muenchen.de/91047/.
  19. Subrahmanyam, G., & Acharya, D. (2017). Financial inclusion fosters growth: Simple multiplier and ‘AK’ growth model analysis. Universal Journal of Accounting and Finance, 5(3), 55–59.CrossRefGoogle Scholar
  20. World Bank. (2014). Global financial development report: Financial inclusion. Washington, DC.Google Scholar

Copyright information

© Springer Nature Switzerland AG 2019

Authors and Affiliations

  1. 1.Faculty of CommerceAin Shams UniversityCairoEgypt

Personalised recommendations