Impact Of Financial Inclusion Research Articles

Does Financial Inclusion Matter to Population Health? Insight From a Global Dataset

AbstractCurrently, extensive empirical studies exist on the impact of financial inclusion on socio-economic outcomes such as economic growth, inequality, and poverty. However, research on financial inclusion and population health is limited and still at the infant stage. Therefore, this article adds to knowledge by inquiring into the health implications of financial inclusion using a global panel dataset for 121 countries between 2004 and 2020. After accounting for endogeneity with heteroskedasticity-based instrumental variable regression and cross-sectional dependency with the Driscol–Kraay estimator, we documented that financial inclusion improves population health outcomes. We found that the effect of financial inclusion on population health outcomes also depends on the level of information and communication technology penetration and existing socio-economic conditions in a country. Following this, we showed that financial inclusion improves population health outcomes in countries with lower income inequality and higher GDP per capita, mobile and internet penetration. We further found heterogeneity in the results across geographical regions and income groups. Following these findings, we suggest that financial inclusion policies could enhance population health.

Financial inclusion, financial development and financial stability in MENA

Purpose The study aims to find out the impact of financial inclusion and financial development on financial stability using panel data from eight countries in the Middle East and North Africa (MENA). Design/methodology/approach To achieve the aim of the study, the researcher prepared two indicators of financial inclusion and governance to find out the impact of financial development on the relationship between financial inclusion and financial stability. Data on financial inclusion was obtained from the International Monetary Fund, data on financial development and financial stability were obtained from the World Bank. Findings The results of the fixed and random effect methods show that financial inclusion has a significant positive effect on financial stability. Additionally, financial development represents a moderating variable in the significant positive effect on the relationship between financial inclusion and stability in the MENA countries. Research limitations/implications The current study suffers from some limitations that researchers must be aware of in future research. First, there is an inability to determine qualitative aspects such as time and cost when designing a composite indicator of financial inclusion. Second, due to limited data, we used only eight countries from the MENA. It is suggested to expand the sample to include other countries. Originality/value This paper contributes to the related literature between financial inclusion and financial stability by confirming or denying the results of previous studies. Also, to the best of the author’s knowledge, this paper is the only one that explains the role of financial development in the relationship between financial inclusion and stability in MENA countries, using a composite index to calculate financial inclusion. Finally, the study seeks to focus the attention of the government and policymakers to build a system of financial inclusion that leads to improving financial stability.

Financial inclusion, household consumption instability and democracy in developing countries: A finite mixture of regressions approach

The literature on the impact of financial inclusion on the instability of household consumption remains controversial. In this article, we considered the possibility that countries follow different regimes of household consumption instability and tested the hypothesis of whether financial inclusion is countercyclical or procyclical to a country's regime of consumption instability. Thus, relying on recent works that used the finite mixture regression method, we identify the different regimes of household consumption instability. Drawing on a sample of 28 developing countries over the period 2011–2020, the paper highlights that the impact of financial inclusion on consumption instability differs across classes and a three-class model best describes the sample. Specifically, we show that financial inclusion is positively associated with consumption instability in the first class, while financial inclusion significantly reduces consumption instability in the second class. Financial inclusion does not have a significant impact on the third class. Furthermore, exploring the potential role of democracy in determining class affiliation, the results emphasize that developing countries would fully benefit from financial inclusion by undertaking strong reforms to improve democracy.

The Impact of Financial Inclusion on the Association between Government Cash Transfers and Violence Against Women

This study employs a comprehensive and evidence-oriented analysis of public initiatives of financial benefits and economic empowerment of women with reference to their impact on violence against women (VAW) in the context of Pakistan. Microdata of survey on Economic and Social Wellbeing of Women in Punjab has been analyzed to underscore the aforementioned impact on women aged 15 to 64 years, both married and unmarried. Logit Probit models have been applied for arriving at empirical findings regarding impact of government financial benefits, marital status, household economic wealth status, education, gender of the household head, family size (number of children), area of residence, age, age square and female empowerment through providing them with employment on violence against women. Findings suggest that public initiatives of providing financial benefits to women for the purpose of enhancing their empowerment have empirical evidence with regard to mitigating violence against women in Pakistan. Public policy interventions for initiation of more research for provision of target based financial benefits to the women who are actually trapped in abusive relationships and social milieus are required to be prioritized in Pakistan. In addition to these research support initiatives, the government should link its budgetary allocations to the female entrepreneurship development and stipulate the departments with achievement of given targets for receiving further allocations. The results further suggest that effective planning and meticulous execution of government financial benefits programs designed especially for women play an established role in aggregation of uplifting their financially empowered status as well as decreasing their physical, emotional and sexual exploitation.

Impact of financial inclusion, economic growth, natural resource rents, and natural energy use on carbon emissions: the MMQR approach

Impact of financial inclusion, economic growth, natural resource rents, and natural energy use on carbon emissions: the MMQR approach

Đánh giá tác động của tiếp cận tài chính toàn diện đến tăng trưởng kinh tế: nghiên cứu thực nghiệm với dữ liệu cấp tỉnh ở Việt Nam

The impact of financial inclusion on economic growth has been researched and debated multi-dimensionally recently. Theoretical and empirical research results with cross-country data show that the relationship between inclusion financial expansion and economic growth exists quite closely and is highly significant. But whether this impact relationship is positive or negative, big impact or a small impact, is different depending on the context of each country. With the goal of researching the relationship between financial inclusion and economic growth for Vietnam in the period 2016 - 2020, household-level data and provincial-level data for Vietnam are selected. The results show that enhancing financial inclusion has a largely positive impact on GRDP per capita. In addition, increasing the proportion of trained workers in the workforce, enhancing digital infrastructure through the internet usage rate, reducing multidimensional poverty, while minimizing negative impacts from the Covid pandemic will improve economic growth in Vietnam in the period 2016 - 2020.

Impact of financial inclusion on socio-economic development of rural households in Andhra Pradesh state

Impact of financial inclusion on socio-economic development of rural households in Andhra Pradesh state

Investigating the effect of financial literacy and financial inclusion on operational and sustainable supply chain performance of SMEs

The purpose of this study was to analyze the effect of financial literacy on operational performance, financial inclusion on operational performance and the effect of financial literacy on sustainable supply chains and the impact of financial inclusion on sustainable supply chains in SMEs in Indonesia. The research method is quantitative through online surveys with the Google form, data collection by distributing online questionnaires to 590 SMEs owners in Indonesia who were selected by simple random sampling. The online questionnaire was designed using a Likert scale of 5 and distributed via social media. Data analysis used structural equation modeling of partial least squares (SEM-PLS) with data processing tools using SmartPLS 3.0 software. The stages of data analysis are validity-reliability test and hypothesis, or significance test used in this study using a Google form which will be distributed to respondents. This questionnaire measurement method uses a Likert Scale of 5, namely Strongly Disagree (STS), (2) Answers Disagree (TS), (3) Neutral Answers (N), (4) Answers Agree (S), Strongly Agree (SS). The results of this study indicate that financial literacy had a positive and significant effect on operational performance, financial inclusion had a positive and significant effect on operational performance, financial literacy had a positive and significant effect on sustainable supply chains and financial inclusion had a positive and significant effect on sustainable supply chains in SMEs in Indonesia. The novelty of this research is the model relationship between Financial Literacy and Financial Inclusion, Operational Performance, SME Sustainable Supply Chain which has never been explained in previous studies.

Financial inclusion and carbon emissions in Asia: Implications for environmental sustainability

This study explores how carbon emissions are affected by financial inclusion. Using a balanced panel data set of 26 Asian countries, we compute a composite index, through the principal component analysis (PCA) technique, of financial inclusion based on a set of attributes related to financial inclusion. Our main analysis also delineates the subsamples of developed and developing Asian economies. The results reveal a long (short)-run positive (negative) impact of financial inclusion on carbon emissions across the Asian countries. This finding is also true for the developed country subsample, implying nonlinearity in short- and long-run relationships. For the developing countries, a more pronounced long-run positive impact compared to developed countries is found. Furthermore, the pairwise causality test results indicate the existence of bi-directional causality between financial inclusion and carbon emissions. These findings have important policy implications, especially in the context of the strategic integration of financial inclusion and climate change strategies.

The Impact of Financial Inclusion on Social and Political Empowerment: Mediating Role of Economic Empowerment

The Impact of Financial Inclusion on Social and Political Empowerment: Mediating Role of Economic Empowerment

Financial inclusion, environmental degradation, and the moderating role of ICT: a global perspective.

This study aims to investigate the global perspective on the relationship between financial inclusion and environmental degradation, taking into account the potential moderating role of information and communication technology (ICT). The research utilizes panel data from 131 countries, covering the period of 1995 to 2019. The findings show that financial inclusion has significant and positive impact on carbon emissions, implying that as financial inclusion increases, so do carbon emissions. Moreover, our findings reveal a significant negative moderating effect of the ICT on the relationship between financial inclusion and carbon emissions. This implies that the impact of financial inclusion on carbon emissions is contingent upon the level of ICT development. The robustness of these findings is confirmed through the use of alternative proxies for the explanatory and moderating variables, as well as alternative estimation methods. The outcomes of this study carry significant implications for both policy and practice.

The impact of digital inclusive finance on the growth of the renewable energy industry: Theoretical and logical Chinese experience

The development of renewable energy is the key to tackling climate changes and ensuring energy security. Meanwhile, the process is usually associated with a huge investment and financing gap, especially for transitional countries like China. Hence, developing and innovating the traditional financial system is urgent. However, existing studies have mainly focused on traditional financial perspectives, and few papers have critically examined how digital financial inclusion affects the growth of renewable energy industries. To this end, using Chinese provincial data from 2011 to 2020 and applying Feasible Generalized Least Squares (FGLS) method, this study explores the effect of financial inclusion on renewable energy and its underlying mechanisms from the production and consumption perspectives. It is found that the impact of financial inclusion on the production side of the renewable energy industry is significantly better than on the consumption side, and there is heterogeneity effect in different energy resource varieties, different regional locations, and different financial regulation intensities. The financial inclusion on renewable energy has a significant pulling effect in photovoltaic and wind provinces, but not in large hydropower provinces. Then, its driving effect is particularly pronounced in the northern region. Nonetheless, it is not significant for renewable energy consumption in the southern region. Besides, this positive effect cannot be achieved without stronger financial regulation. The mechanism of action assessment finds that optimizes the consumption pattern, increase the competition of commercial banks, and improve technological innovation all contribute to the positive effect whereas, FDI shows the negative effect. This study provides new evidence on China's achievement of the energy transition, suggesting the need to further improve incentives for FDI firms and to strengthen consumption-side guidance.

Impact of Financial Inclusion on CO2 Emissions: A Comparative Study of Developed and Developing Countries During the Period (2004 -2021)

Impact of Financial Inclusion on CO2 Emissions: A Comparative Study of Developed and Developing Countries During the Period (2004 -2021)

Financial inclusion and tax effort in sub-Saharan Africa: the role of institutional quality

Addressing growth challenges in developing countries requires mobilising domestic resources in the face of declining external financing. This paper explores the effects of financial inclusion on tax efforts in sub-Saharan Africa, conditioned by institutional quality. To do this, a finite mixture model that takes into account the potential presence of unobserved heterogeneity was estimated based on a sample taken from 43 countries over the 1996–2019 period. Tax effort scores were constructed using several stochastic frontier models. The results show that the impact of financial inclusion on tax efforts differs across country groups. For example, financial inclusion stimulates tax effort in sub-Saharan Africa in 93.8 per cent of cases and inhibits tax effort in only 6.2 per cent of cases. These results are robust to several sensitivity tests. This paper highlights the need for countries in sub-Saharan Africa to improve access to financial systems by increasing mobile banking coverage and accessibility and reducing financial services costs. These countries should also look to capitalise on the benefits of financial inclusion by protecting political rights and fighting corruption.

Impact of financial inclusion on household welfare in Liberia: A gendered perspective

AbstractFinancial inclusion (FI) is critical to achieving the Sustainable Development Goals, particularly zero poverty, gender equality, and reduced inequalities, but there is limited evidence of its impacts on household welfare in fragile and post‐conflict countries (FPCCs). This study analyses the impact of FI on household welfare in Liberia using the Liberian Household Income and Expenditure Survey of 2016–2017. For the empirical analysis, we use an inverse probability‐weighted regression adjustment model and separate analyses for male‐headed households (MHHs) and female‐headed households (FHHs) to identify possible gender differences. We find that using mobile money statistically significantly increases household food security for MHHs and FHHs. In particular, the welfare impact is greater for MHHs in terms of food availability, while in relation to food quality and dietary diversity, the impact is greater for FHHs. These findings show the need to scale up FI in FPCCs as a catalyst for improving household welfare.

The impact of financial inclusion and natural resource endowment on China's carbon emissions in the post-covid-19 period

After the novel coronavirus pneumonia pandemic, how to control the pandemic and restore the economy to the pre-pandemic level as soon as possible to promote resilience and sustainable development has become one of the most important policy decision issues of global concern, Green development, with low-carbon economic development as its core essence, is an important way to achieve high-quality economic development in the Post-Covid-19 period. The paper selects 30 regions in China from 2006 to 2022 and empirically examines the effects of financial inclusion and natural resource endowment on regional carbon emission (CE), and draws the following conclusions. (1) Resource endowment can increase carbon emission in the national and central regions, verifying the existence of the “resource curse effect” on carbon emission intensity, but not exist in the eastern region. In the western region, resource endowment has a positive but insignificant relationship with carbon emission intensity. Financial inclusion development suppresses CE, but not significant and financial inclusion promotes the decrease of carbon emission in east. While the central region has a relatively small impact on the positive effect of CE; the western region has an insignificant effect. (2) The level of urbanization promotes CE at the national and eastern levels, while not significant in the central and a negative effect in the west. GDP per capita can increase CE in all regions, but the western region has the largest elasticity. Industrial structure has a positive effect on CE nationwide and in all regions, with the smallest effect on CE in the eastern region; there is a positive correlation between energy intensity and CE in all regions. The research provides important references for different regions in China to realize low-carbon development.

Impact of Financial Inclusion on Women Entrepreneurs in India: An Empirical Study

Purpose: Researchers, practitioners, government leaders, as well as other stakeholders keep expressing a great deal of interest mostly in the close connection between economic inclusion with women having entrepreneurship on a both national and international scale.
  
 Theoretical framework: The fundamental objective is still to increase women's access to finance so they can engage in entrepreneurship. The latest evidence exploring the connection between women's entrepreneurship as well as financial inclusion has generated an assortment of findings that are more conventional than reality.
  
 Design/methodology/approach: This study looked into how financial inclusion affected the functioning of women-owned enterprises in Vellore, Tamilnadu, India. One thousand two thousand seventy-four (1,274) women-owned Small and medium enterprises, Small and Medium Businesses (MSMEs) registered with MSME made up the participants in this investigation, as well as three hundred fifty-seven (357) MSMEs being chosen as such sample size.
  
 Findings: The research used structured questionnaires and in-person interviews to collect data. Multiple Regression (Ordinary Least Square Estimate), as well as Pearson Product Moment Correlation Coefficient, were used to examine the data. Findings indicated that the efficiency of women-owned enterprises is positively and significantly impacted by financial inclusion.
  
 Research, Practical & Social implications: In hopes of reducing the gender disparity in financial intermediation, it is advised that the administration put laws and legislative regulations in place.
  
 Originality/value: Recognizing the crucial role that women-owned businesses play in the country's economic expansion and continue to increase gender diversity to foster an atmosphere of innovation.

Measuring Financial Inclusion in Southeast European Countries Using Multidimensional Index of Financial Inclusion

This paper provides an insight into measuring financial inclusion through a multidimensional index of financial inclusion in Southeast European countries (SEE). We used a two-stage principal component analysis to extract dimensions of financial inclusion. Data were obtained from two sources, the World Bank Global Findex Survey (WB-GFS) data base and the International Monetary Fund Financial Access Survey data (IMF-FAS), for twelve SEE countries for the years 2011, 2014, 2017, and 2021. The research confirms that financial inclusion can be measured using two dimensions in terms of access as one factor and usage and availability as the second factor. Practical implications of this research are in ensuring an adequate measure of the level of financial inclusion for SEE countries that can be used for further research related to understanding the underlying factors contributing to financial inclusion, barriers to financial inclusion as well as the impact of financial inclusion on economic growth and poverty alleviation.

Impact of Financial Inclusion on Economic Growth and Unemployment

In the past decade, Southeast Asia has seen the development of financial inclusion, as evidenced by the growth of the penetration, availability, and usage dimensions of financial inclusion. This study analyses the impact financial inclusion has on economic growth, represented by GDP per capita growth, and unemployment using data from Indonesia, Malaysia, Thailand, the Philippines, and Cambodia. The authors employed panel data regression with fixed effect and random effect models to analyse the data. The results show that the number of commercial bank branches and outstanding loans statistically significantly affect GDP per capita growth, while the number of saving/deposit accounts does not. All three variables are shown to have a statistically significant impact on unemployment.

Impact of Financial Inclusion on Human Development Index: Special Reference to BRICS Countries

The BRICS countries are frequently referred to as “emerging economies”; they account for a sizable proportion of the global population and face issues such as poverty, income inequality, slow economic growth, gender inequality, and high unemployment rates. Policy measures are currently being considered and implemented in response to these difficulties. Previous studies suggest that greater financial inclusion has a positive effect on such countries’ development, hence its importance as a tool used to deal with the socioeconomic challenges faced by emerging economies. When we talk about “financial inclusion,” we are referring to the ease with which people can access and make use of basic financial services, such as savings accounts, credit cards, and insurance. In this paper, we use data from the Global Findex Database and the World Bank Database to create the Financial Inclusion (Finclusion) Index, which provides a comparative measure of financial access for different nations. The primary purpose of this paper is to evaluate the effect of financial inclusion on HDI in 105 countries; per capita income and gender development are also compared across BRICS countries. The study found that financial inclusion had a significant impact on human development in general and a positive effect on the development of women in particular. The result is valid for the BRICS countries, where financial inclusion has considerably boosted human development and is positively correlated with women empowerment.