Financial Inclusion Development Research Articles

TO THE QUESTION OF THE FORMATION AND DEVELOPMENT OF FINANCIAL INCLUSION IN KAZAKHSTAN

The purpose of this article is to study the formation and development of financial inclusion in Kazakhstan. In modern realities, digital technologies are the engine of innovation, competition and economic growth. The author singled out a number of factors influencing its development. These technologies make it possible to level barriers in the accessibility of financial services, that is, to increase financial inclusion.

Mediating Effect of Financial Behaviour on the Influence of Financial Literacy and Financial Technology on Financial Inclusion Development in Jordanian MSMEs

This research investigates the relationship between financial literacy, financial technology, financial behavior, and financial inclusion development in Jordanian MSMEs. Specifically, it seeks to examine whether financial behavior mediates the influence of financial literacy and financial technology on financial inclusion development. This study employs a partial least square structural equation modeling (PLS-SEM) approach to investigate the relationship between financial literacy, financial technology (FinTech), financial behavior, and financial inclusion development in Jordanian micro, small, and medium enterprises (MSMEs). Based on a sample of 334 MSMEs in Jordan, the study found that financial literacy and FinTech have a significant impact on financial inclusion development in MSMEs. Additionally, financial behavior was found to mediate the relationship between financial literacy and FinTech on financial inclusion development. The findings of this study suggest that financial literacy and FinTech can be useful tools in promoting financial inclusion in MSMEs, and that financial behavior plays a crucial role in realizing their full potential. The study provides insights into the factors that influence financial inclusion in MSMEs and has implications for policymakers, financial institutions, and MSMEs in Jordan and other emerging economies. The use of PLS-SEM in this study provides a robust statistical approach for analyzing the complex relationships between the variables of interest. The scientific novelty of this study lies in its focus on the mediating effect of financial behavior on the relationship between financial literacy, financial technology, and financial inclusion development in Jordanian MSMEs. Keywords: financial behaviour, financial inclusion development, financial literacy, FinTech, partial least square structural equation modeling. https://doi.org/10.55463/issn.1674-2974.50.3.10

Practical Strategies for Sustainable Development of Inclusive Finance in the New Era

In the context of the new era, China has made remarkable progress in the institutional construction, product innovation, and risk prevention and control of inclusive finance. However, challenges still remain, such as the insufficient integration between digital economic development and inclusive finance, limited coverage of basic financial services, weak development of small and micro-enterprises and agriculture, and the lack of development of rural inclusive finance. This article summarizes the current development status of inclusive finance, identifies the challenges faced in its development, and proposes practical strategies for its sustainable growth in the new era, drawing from domestic and international experience in inclusive finance.

Опыт развитых стран мирового пространства в разработке и распространении финансовых инклюзивных форм поддержки малого и среднего предпринимательства

The article examines the experience of developed countries in the development and dissemination of financial inclusive forms of support for small and medium-sized enterprises (MSE). Goal. The purpose of this article is to study and substantiate the methodological approaches of developed countries in the development and dissemination of financial inclusive forms of MSE support. Tasks. To identify the prospects and limitations of using foreign experience in supporting financial inclusive entrepreneurship and to form basic directions for improving the financing system of MSE based on the development of financial inclusion. Methodology. The methodology of studying the experience of developed countries in the development and dissemination of financial inclusive forms of MSE support is based on a systematic and structural analysis, an evolutionary and institutional approach. Results. It is concluded that there is a need to increase the introduction of innovations in such support, with an emphasis on financial innovation and financial inclusion. The necessity of increasing the flexibility and inclusiveness of providing this type of support to MSE in economically developed countries is shown. The experience of developed countries of the world space is studied as general conditions for the formation of forms and methods of MSE support. The expediency on the basis of a methodological approach in moving from the general to the particular in the study of economic phenomena is proposed, in addition to the assessment of financial inclusion as a factor of economic growth of the national state. The support of MSE in developing countries and countries with economies in transition is analyzed, with an emphasis on supporting women's and youth entrepreneurship. Conclusions. The results of the study can serve as a basis for the development of strategic plans for the development of MSE and government regulation in the field of using the experience of developed countries in the development and dissemination of financial inclusive forms of MSE support.

ЗМІСТ ФІНАНСОВОЇ ІНКЛЮЗИВНОСТІ ЯК ІНДИКАТОРА ДОСТУПНОСТІ ФІНАНСОВИХ ПОСЛУГ

The article analyzes the reform of the financial sector of the economy. Available services for the population have been studied. It has been determined that many unbanked customers typically have some form of identification that is typically missing from the documentation and credit records required by financial service providers to assess creditworthiness and carrying out due diligence of consumers. Aspects of the formation of sustainability of financial inclusion are determined. The analyzed level of financial inclusion is determined on the basis of the conducted questionnaire, which contains eighteen questions and the obtained results are combined into two groups. It has been studied that financial inclusion is one of the identified directions, the basis of which is an increase in the level of accessibility in the use of all financial services and the growth of financial literacy and awareness of the country's population. Financial inclusion, as one of the strategic directions of the sustainable development of the economic growth of Ukraine, is to ensure macro- financial stability, increase the reliability and technology of the financial system, achieve European standards in the financial market, increase trust in the financial market, implement the Association Agreement between Ukraine and the EU and other international contracts of Ukraine. The components of financial inclusion are indicated. It was found that Ukraine has a low level of use of financial services. It was studied how the financial literacy of the population increases with the help of financial inclusion. The article researched the institutional aspects of financial inclusion and its elements, which should be developed in the conditions of digitalization of economic relations. Namely, ensuring digital financial inclusion and introducing responsible digital financial practices; promoting the development of digital financial services. The need to implement strategic development of financial inclusion by the National Bank of Ukraine is substantiated. It is highlighted that the strategy for the development of financial inclusion in Ukraine should be based on the quality of financial services for the population that has access to them, and create new ways of distributing at least basic services, and itself for the population that does not have access to them.

ECONOMIC INCLUSION AT THE INTERNATIONAL AND REGIONAL LEVELS: THE FINANCIAL ASPECT

Introduction. Economic inclusion at the international and regional levels refers to the active participation and integration of all individuals, communities, and countries into the global economy. It aims to ensure that no one is left behind and that economic opportunities and benefits are accessible to all, regardless of their socio-economic background, gender, ethnicity, or geographical location. By promoting economic inclusion at the international and regional levels, countries and organizations can foster economic growth, reduce inequality, and create a more inclusive and sustainable global economy. It requires collective efforts and a commitment to ensuring that the benefits of economic development are shared by all segments of society. The purpose of the article is to analyze the features of economic inclusion and its financial aspects, to form a set of effective tools to ensure financial inclusion in conditions of sustainable development. Results. The article analyzes and defines the main concepts of the research area: “economic inclusion” and “financial inclusion”, presents the main components of economic inclusion and defines the financial aspects of economic inclusion, which in the future provide an opportunity for the formation of financial inclusion. A conceptual approach to ensuring economic inclusion at the international and regional level, taking into account the financial aspect, has been formed. Conclusions. According to the results of the study, the need to ensure economic inclusion at the international and regional level has been proven, and the need to take into account the financial aspect of the development of inclusive economic relations has been proven. The presented results of the research make it possible to form the next steps regarding the study of the problems of economic inclusion in the aspect of the development of financial inclusion and to focus the vector of research precisely on the components of financial inclusion, as the main elements of ensuring the inclusiveness of the country’s economy in modern conditions of globalization and integration.

ФИНАНСОВАЯ ИНКЛЮЗИВНОСТЬ КАК ФАКТОР СОЦИАЛЬНО-ЭКОНОМИЧЕСКОГО РАЗВИТИЯ

The purpose of the article is to reveal scientific and practical approaches to the definition of the concept and place of financial inclusion in the system of factors of socio-economic development. The methodology of the research is based on the application of methods of theoretical generalization and abstract-logical analysis in the systematization and generalization of scientific approaches to understanding financial inclusion. As a result, we have studied the evolution of the concept of «inclusion» from the sphere of analysis of social processes at the level of social groups (including various social relations) to the macroeconomic level. It is revealed that various interpretations of the concept of «financial inclusion» contain its definition as a «process», «stage» or «state» (development). Financial inclusion is established to be one of the factors of economic development, and also the need to study the role of financial inclusion among the factors of socio-economic development is justified. The author's definition of the concept of financial inclusion is proposed. An alternative view on the definition of financial inclusion is substantiated based on its opposite – financial exclusivity, which is either voluntary (self-exclusivity) or compulsory and is determined by four groups of reasons. The consensus formed in the scientific literature on the three main components of financial inclusion: coverage, use and quality of financial services is analyzed. Positive factors and risks of financial inclusion development, as well as negative aspects of financial exclusivity are identified.

An Empirical Analysis of Inclusive Finance Support to the Development of Rural Revitalization in Linyi

This research adopts the coefficient of variation method to construct Linyi inclusive financial development index and rural revitalization index. According to the standard of international inclusive financial development level, when the inclusive financial development index is between 0 and 1, it indicates that inclusive financial development in the region is from a low level to a high level. The research finds that the degree of inclusive financial development in Linyi is different. Apart from Lanshan District, the level of inclusive financial development in other districts and counties is low, with the unstable inclusive financial development index between 0.01 and 0.15 in most years. After measuring the rural revitalization index, it is found that the Linyi's rural development is better and the regional development is more balanced. Through empirical analysis, the research comes to a conclusion that inclusive finance can effectively promote the rural revitalization in Linyi. Based on the above analysis, the paper puts forward the following suggestions: Linyi should optimize the layout of financial resources, improve the rural financial ecological environment, perfect the credit system of farmers, improve the quality of financial services, and increase the investment in agriculture, forestry and water to guide the upgrading of agricultural industry structure.

중국 디지털 포용적 금융이 경제 발전에 미치는 영향

The close integration of finance and technology promotes the rapid development of digital inclusive finance, creates conditions for residents and low-income groups to enjoy financial services at a lower cost, and provides a foundation for further economic development. By establishing an economic development indicator system, the economic development data from 2011 to 2020 for 31 provinces and cities in China and a panel model of the digital inclusive financial development index were used to empirically analyze their impact on China's economic development. The effect on development was empirically analyzed. The analysis results are as follows. First, it was found that digital inclusive finance had a significant positive (+) effect on Shandong's economic development. Second, it was found that the coverage breadth, the usage depth, the digitization level had a significant positive (+) effect on the economic development of China.

Green recovery through financial inclusion of mobile payment: A study of low- and middle-income Asian countries

The financial industry has been affected by the rise of informational technology and is actively developing digital finance. The use of technology has become an alternative resolution to improve global financial inclusion. This research discusses whether the development of mobile payment systems promotes financial inclusion and improves green environment in 29 low- and middle-income countries in Asia from 2014 to 2018. We utilize the outstanding bank deposit ratio and bank loan ratio as measures of financial inclusion and three measures for mobile payment. This study considers green recovery under an education indicator that shows awareness about the implementation of green recovery technologies. We find that some amount from loans is also useful when spent on green recovery in the move towards a clean environment. The empirical investigation notes a significant impact from mobile payment to financial inclusion development with the effect from mobile payment to financial inclusion more critical for lower- than higher-income countries in the sample. The empirical findings offer concrete evidence to encourage mobile payment ecosystems through the cooperation of government, financial institutions, and technology companies. A few policy implications are presented at the end of the study.

Research and Prospect Analysis of Rural Inclusive Finance Development Based on Blockchain Technology

Based on the great importance attached by the state to inclusive finance, this project innovatively proposes to use blockchain technology to promote the sustainable development of inclusive finance in rural areas. Based on theory and practice, this project analyzes the financing difficulties of small and medium-sized enterprises in Anhui, the high cost of rural inclusive finance and the difficulties in implementation. This paper summarizes the reasons from the supply layer, demand layer and government level of rural inclusive finance, and puts forward suggestions for improvement.

Exploring the role of digital inclusive finance in agricultural carbon emissions reduction in China: Insights from a two-way fixed-effects model

Digital inclusive finance can help to achieve agricultural carbon reduction through effective resource allocation, financial innovation, and digital networks. This study empirically tested the role of digital inclusive finance in agricultural carbon emissions reduction using a two-way fixed-effects model that was based on panel data of 30 provinces from 2011 to 2019 in China. The data and statistics showed that China's total agricultural carbon emissions were still growing and had not yet reached their peak. This empirical study found that digital inclusive finance had a significant effect on the reduction in agricultural carbon emissions. Specifically, for every one-level increase in the digital financial inclusion development (DFII) level, the province's total agricultural carbon emissions (TACC), agricultural greenhouse gas carbon emissions (ACGC), and agricultural carbon source carbon emissions (ACSC) decreased by 0.31, 0.38, and 0.25%, respectively, but there was no significant decrease in agricultural energy use carbon emissions (ACEC)1. Furthermore, the first- and second-order lagged terms of digital inclusive finance still had significant agricultural carbon reduction effects, reducing TACC by 0.30 and 0.29%, respectively. To better utilize the agricultural carbon emissions reduction effect of digital inclusive finance, we should further support the development of digital inclusive finance; promote education on, and the breadth and depth of digital inclusive finance; encourage cooperation between digital inclusive finance and low-carbon enterprises to reduce the financing constraints of agricultural low-carbon enterprises; and stimulate the R&D and sales of low-carbon technologies.

Assessing the role of financial development and financial inclusion to enhance environmental sustainability: Do financial inclusion and eco-innovation promote sustainable development?

In the context of increasing uncertainty in the international economic environment and changes in the labor market, it is imperative to pay proper attention to the environmental quality and sustainability. This paper theoretically analyzes the impact of financial development and financial inclusion on the environmental sustainability. Based on the survey data of 2093 households in Xunyi and Yangling, Shaanxi Province, China, the 2SLS model, and the instrumental variable quantile regression model are constructed to test the association of variables. The results show that the development of financial inclusion and financial development have an inverted “U” shaped nonlinear effect on the environmental quality and efficiency; Only after the development of financial inclusion reaches a certain degree can the environmental quality and sustainability be effectively improved. The results of the quantile regression of instrumental variables show that financial inclusion significantly improves the environmental quality with medium and high degrees but does not have a significant effect on the environmental quality and sustainability with low degrees. After considering the endogeneity and robustness test, the above conclusion still holds. Further research shows that inclusive financial development improves environmental quality and results in sustainable development. Improving the convenience and depth of use of financial services is the key to effectively reducing rural household economic vulnerability and improve the environmental quality. The heterogeneity analysis shows that financial inclusion development has a stronger effect on improving the environmental quality. This study provides empirical evidence and policy implications to better promote financial inclusion to improve the economic vulnerability of rural households, improve environmental quality and achieve the sustainable development. These findings provide policy support to better promote financial inclusion to improve the economic vulnerability of rural households, improve environmental quality and achieve the sustainable development, which can ameliorate environmental degradation, and create a safe, healthy and sustainable environment for achieving sustainable development goals.

Research on the Development Level and Differentiation of Rural Digital Inclusive Finance under the Background of Common Prosperity

Under the background of common prosperity, inclusive finance is facing new opportunities and challenges, and the active promotion of digital inclusive financial services in rural areas in China is of great significance for exploring the path of coordinated improvement of the development level of rural digital inclusive finance in various cities in Jiangxi Province, so as to comprehensively promote rural revitalization and solidly promote common prosperity. Based on the digital inclusive financial development data of 100 county-level districts in Jiangxi Province from 2014 to 2020, the results show that from 2014 to 2016, the overall development level of rural digital inclusive finance in various cities in Jiangxi Province has improved greatly. The development gap of rural digital inclusive finance in different cities has narrowed, but the development imbalance between regions is obvious. The increase in the depth of use is mainly limited by the dual dimensions of coverage breadth and digitalization. Based on the above conclusions, relevant policy suggestions are put forward from the aspect of development level, such as opening up sources and reducing expenditure, coordinating development to improve the radiation effect of developed regions, and capital market construction.

An analysis on the relationship between ICT, financial development and economic growth: Evidence from Asian developing countries

This study examines the effect of ICT progress on economic growth by constructing an ICT diffusion index. Along with ICT, this study further investigates the role of financial development and the combined impact of ICT and financial development on growth in 10 Asian developing economies covering the period 2001–2017. To analyze the panel data, this study employed the ARDL model and estimated the Pooled Mean Group estimator. The estimated results reveal a significant positive long-run relationship between financial expansion and economic progress. While ICT hurts economic growth on its own, it has a significant positive impact when combined with financial development. The robustness of the results has been verified by Fully-Modified OLS (FMOLS) and Dynamic OLS (DOLS) estimations. To promote enduring economic growth in Asian developing countries, the paper recommends ensuring inclusive financial development combined with modern ICT.

Impact of Financial Inclusion on the Efficiency of Carbon Emissions: Evidence from 30 Provinces in China

Carbon emissions have become a serious environmental problem worldwide, with the greenhouse effect and global temperature increase being the main areas of concern. Financial inclusion is a means to increase the welfare of citizens and promote sustainable development. Development of financial inclusion may have a big impact on carbon emissions. This study uses data from 2011 to 2019 to do panel Tobit regression and check the effect of financial inclusion on the efficiency of carbon emissions, which is calculated by the super-efficiency Slacks-Based Measure (SBM) -data envelopment analysis (DEA) method. The results show that financial inclusion decreases the efficiency of carbon emissions. Moreover, financial inclusion could reduce the efficiency of carbon emissions by increasing the proportion of tertiary industries. Moreover, the effect varies in each region. Thus, following these conclusions, we propose several related policy implications. The government should strengthen the supervision of money due to financial inclusion and ensure that the investment should be put into environmental projects. In addition, it needs to pay attention to carbon emissions generated in the process of industrial upgrading. More access to renewable energy is an effective measure to solve the problem of higher carbon dioxide emissions.

Research on the impact of inclusive finance on agricultural green development: Empirical analysis of China's main grain producing areas.

In order to study the impact of inclusive finance on agricultural green development, This paper uses both static panel and dynamic panel (system GMM model) estimation methods to make empirical analysis of the impact of inclusive financial development on agricultural green development. The results both find that there is a significant positive correlation between the level of inclusive financial development, real GDP per capita, the proportion of the added value of agriculture, forestry, animal husbandry and fishery in GDP and agricultural green development. This paper puts forward some countermeasures and suggestions to promote agricultural green development, including vigorously developing inclusive finance, promoting economic growth, promoting the development of agriculture, forestry, animal husbandry and fishery, and increasing environmental protection expenditures.

중국 디지털 포용적 금융이 경제 발전에 미치는 영향

The purpose of this study is to analyze the impact of digital inclusive finance on the economic development of Shandong Province in the background of rapid economic development. By establishing an economic development index system, this study uses a panel model for economic development data and digital inclusive financial development index from 2011 to 2020 for 16 provinces in Shandong Province to determine whether digital inclusive financial development in Shandong is the economy of Shandong Province. The effect on development was empirically analyzed. The analysis results are as follows. First, it was found that digital inclusive finance had a significant positive (+) effect on Shandong's economic development. Second, it was found that the breadth of coverage, the operational depth, the degree of digitization had a significant positive (+) effect on the economic development of Shandong Province.

An empirical study on financing constraints of digital inclusive finance development on small and medium-sized technology-based enterprise

PurposeThis paper mainly explores the relationship between digital inclusive finance and financing constraints of technological-based SMEs, and how digital inclusive finance affects the financing constraints of technology-based SMEs. This paper empirically analyzes the relationship between them through the OLS model, and then further verifies the relationship between them through robust regression and heterogeneity analysis. At the same time, it uses the mechanism test to explore how digital inclusive finance affects the financing constraints of technology-based SMEs. This paper aims to address these issues.Design/methodology/approachThis paper aims to explain the relationship between digital inclusive finance and financing constraints of technological-based SMEs. Technology-based SMEs always face the difficult problem of “financing difficulty” and “financing expensive” in the development process, which hinders the survival and development of enterprises to some extent. Digital inclusive finance development policy vigorously promoted by the state has alleviated the financing constraints of technology-based SMEs and brought opportunities for their development.FindingsThe results show that the role of digital inclusive finance in alleviating the financing constraints of technology-based SMEs, and incremental supplement and alleviating information asymmetry are the main reasons for digital inclusive finance to alleviate the financing constraints of technology-based SMEs. In view of the availability of digital inclusive financial data, this paper only uses the data from 2014 to 2019.Originality/valueThe authors’ research clearly found that the development of digital inclusive finance alleviates the financing of technology-based SMEs from the two aspects of “incremental supplement” and alleviating information asymmetry, so as to provide corresponding reference basis for the government to formulate a series of plans to support the development of technology-based SMEs.

Chasm or Bridge: The Impact of Digital Inclusive Finance on Farmers' Incomes

The increase in the level of development of digital inclusive finance provides unlimited possibilities for the economic development of each country. By using panel data of 31 provinces in China from 2011-2020, a panel fixed effects model, mediating effects model and threshold regression model were constructed to conduct an empirical study and found that: digital inclusive finance can promote the growth of farmers' income by expanding the breadth of coverage and depth of use, with a more significant impact on the eastern and central regions of the mediating variable is the level of innovation and entrepreneurship. With the development of digital inclusive finance, there is a non-linear change in the coefficient of the impact of the level of digital inclusive finance development on the per capita disposable income of rural residents, which first decreases and then increases.