Does financial inclusion reduce poverty and income inequality in developing countries? A panel data analysis
Abdullah Omar,Kazuo Inaba +1 more
TLDR
In this article, the authors investigated the impact of financial inclusion on reducing poverty and income inequality, and the determinants and conditional effects thereof in 116 developing countries using an unbalanced annual panel data for the period of 2004-2016.Abstract:
Financial inclusion is a key element of social inclusion, particularly useful in combating poverty and income inequality by opening blocked advancement opportunities for disadvantaged segments of the population. This study intends to investigate the impact of financial inclusion on reducing poverty and income inequality, and the determinants and conditional effects thereof in 116 developing countries. The analysis is carried out using an unbalanced annual panel data for the period of 2004–2016. For this purpose, we construct a novel index of financial inclusion using a broad set of financial sector outreach indicators, finding that per capita income, ratio of internet users, age dependency ratio, inflation, and income inequality significantly influence the level of financial inclusion in developing countries. Furthermore, the results provide robust evidence that financial inclusion significantly reduces poverty rates and income inequality in developing countries. The findings are in favor of further promoting access to and usage of formal financial services by marginalized segments of the population in order to maximize society’s overall welfare.read more
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Financial Inclusion; Can it Meet Multiple Macroeconomic Goals?
Ratna Sahay,Martin Cihak,Papa N'Diaye,Adolfo Barajas,Srobona Mitra,Annette J Kyobe,Yen N Mooi,Reza Yousefi +7 more
TL;DR: This paper examined macroeconomic effects of financial inclusion and found significant benefits to economic growth from financial inclusion, but the benefits diminish as financial inclusion becomes large and the depth of financial access becomes large.
Journal ArticleDOI
Financial inclusion and energy poverty: Empirical evidence from Ghana
Isaac Koomson,Michael Danquah +1 more
TL;DR: In this paper, the authors examined the effect of financial inclusion on energy poverty using multidimensional measures and found that a standard deviation increase in financial inclusion is associated with a decrease in household energy poverty between 1.380 and 1.556 standard deviations.
Journal ArticleDOI
Financial technology as a driver of poverty alleviation in China: Evidence from an innovative regression approach
TL;DR: In this article , the authors explored the effects of fintech on poverty alleviation in the provinces of China, using web crawler technology and word frequency analysis to collect variables, and then construct a finttech index for each province.
Does financial inclusion index and energy performance index co-move?
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Does financial inclusion induce poverty, income inequality, and financial stability: empirical evidence from the 54 African countries?
TL;DR: In this article, the authors examined the impact of financial inclusion on poverty, income inequality and financial stability using panel data of 54 African countries and found that financial inclusion is a valuable indicator; it reduces poverty, inequality and improves financial stability.
References
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BookDOI
Measuring Financial Inclusion : The Global Findex Database
Asli Demirguc-Kunt,Leora Klapper +1 more
TL;DR: The first analysis of the Global Financial Inclusion (Global Findex) database is presented in this article, which measures how adults in 148 economies save, borrow, make payments, and manage risk.
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Do Rural Banks Matter? Evidence from the Indian Social Banking Experiment
TL;DR: In this paper, the authors used data on the Indian rural branch expansion program to provide empirial evidence on the issue of lack of access to finance, which is often cited as a key reason why poor people remain poor.
Book
The Global Findex Database 2017: Measuring Financial Inclusion and the Fintech Revolution
TL;DR: The Global Findex Database 2017 as mentioned in this paper provides a detailed insight into how adults in more than 140 economies access accounts, make payments, save, borrow, and manage risk, with a focus on reducing poverty, hunger, and gender inequality.
Journal ArticleDOI
Do rural banks matter? Evidence from the indian social banking experiment
Robin Burgess,Rohini Pande +1 more
TL;DR: In this article, the authors used data on the Indian rural branch expansion program to provide empirial evidence on the issue of lack of access to finance, which is often cited as a key reason why poor people remain poor.
Posted Content
The Global Findex Database 2014: measuring financial inclusion around the world
TL;DR: The Global Financial Inclusion (Global Findex) database as mentioned in this paper provides comparable indicators showing how people around the world save, borrow, make payments, and manage risk, and it has been shown that 62 percent of adults worldwide have an account at a bank or another type of financial institution or with a mobile money provider.
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Financial Inclusion: New Measurement and Cross-Country Impact Assessment
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