Developing and Validating Constructs: A Pragmatic Measurement of Financial Inclusion as a Tool for Sustainable Growth

Abstract

Given the ubiquity of sustainability, the study attempts to develop and validate measurement constructs for financial inclusion. Further, it empirically examines the statistical relationship between validated constructs of financial inclusion and financial empowerment of blue-collar migrant workers. This empirical study proposes an exclusive research framework to inspect the development and validation of measurement scales for financial inclusion in the context of sustainable growth in India. The primary data were collected using the structured interview schedule among 268 blue-collar migrant workers. The Exploratory Factor Analysis (EFA) was employed to validate measurement constructs of financial inclusion and examine their hypothetical and conjectural relationships with the help of multiple correlation analysis. This paper identified eight valid and reliable underlying constructs of financial inclusion with the help of an exploratory factor study. The underlying constructs are ease of access, usage, availability, affordability, physical proximity, awareness and knowledge, financial literacy, and financial empowerment. Further, the outcomes of this study also confirmed that the underlying constructs of financial inclusion have a significant positive influence on the financial empowerment of blue-collar migrant workers.