Impact Of Financial Inclusion Research Articles

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.

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.

Determinants of Youth Financial Inclusion and Their Willingness to Become Entrepreneurs in Tanzania

ABSTRACT: Over the last decade or so, Tanzania's economy has registered a significant growth in the rate of financial inclusion. The level of financial exclusion has consistently declined from 55% to 28% between 2009 and 2017 respectively. Moreover, the percentage of the adult population using formal financial services has almost quadrupled between 2009 and 2017. However, available statistics also illustrate that the participation of youth population in the formal banking, insurance, credit and savings products and services remain abysmally low. Furthermore, less than 50 percent of youth borrow from formal financial institutions. Indeed, lack of access to finance is frequently singled out as the major obstacle among youth to engage in entrepreneurial activities. Although much has been done to address financial inclusion, relatively little is known about the determinants of youth financial inclusion as well as the impact of financial inclusion on youth's willingness to engage in entrepreneurship in Tanzania. This study uses World Bank Financial Inclusion Index, (2018) to examine both the determinants of financial inclusion and the effects of financial inclusion on youth willingness to engage in entrepreneurial activities in Tanzania. In doing so, we employ propensity scores matching (PSM) and the treatment effects models. Financial inclusion is measured by using three indicators namely; "formal account", "formal savings" and "formal credit". The results from the logit PSM regression indicate that being employed increases the likelihood of having a current account or a savings account in a formal financial institution amongst the young people. In the case of formal account and formal saving, attaining a secondary education level increases the probability of having a formal account and a formal saving account relative to those with primary education. The estimated results from the Average Treatment Effect, whose computation is built on the propensity scores and the kernel matching algorithm show that having a formal current account, formal saving account and access to formal credit services positively affect the willingness of youths to engage into entrepreneurship. The policy implication is that government policy that enhances expansion of credit to youth remains paramount as a panacea to engage youth in entrepreneurial activities.

Financial Inclusion and Economic Empowerment: A Systematic Review

Due to rising levels of poverty and inequality in the world, there is a need to study the nexus between financial inclusion and economic empowerment and how it can aid sustainable development. The United Nations has identified financial inclusion as a pertinent tool that can economically empower citizens and lead to inclusive and sustainable economic development. This study implemented the Systematic Quantitative Assessment Technique and systematically reviewed the body of literature on the measurement of financial inclusion and economic empowerment as well as the impact of financial inclusion on economic empowerment. The review revealed financial inclusion is an essential enabler of economic empowerment as it provides individuals with means to access resources and advance their financial well-being. Recognizing and harnessing the potential of financial inclusion is pivotal in unlocking the full potential of individuals and communities, ultimately leading to inclusive economies worldwide.

Impact of Financial Inclusion on India’s Economic Development under the Moderating Effect of Internet Subscribers

Financial inclusion is an emerging economic growth paradigm, especially in developing economies like India. It is an essential barometer for the all-encompassing growth of a country and its economy. However, there is still a debate regarding the effect of Financial Inclusion (FI) on achieving sustainable development. This study aims to determine if FI helps achieve Sustainable Development Growth (SDG) in India and if internet subscribers significantly influence the connection between FI and SDG. Secondary data from 16 states and one UT in India have been collected for 2017–2019. Therefore, the sample data is recent and covers a large country span. The data source is NITI Aayog and PMFBY (“Pradhan Mantri Fasal Bhima Yojana”) reports. The findings of this research are that FI has a positively significant relationship with sustainable development goals (SDG) in India. However, when the internet subscribers are high, the FI’s positive association with SDG gets reduced. PMFBY and SDG have been used for the first time, along with internet subscribers as moderators. The outcome has direct policy implications for improving the nation’s financial inclusion and economic growth.

Impact of Financial Inclusion on Economic Growth of African Countries

Purpose: The main objective of this study was to understand the effect of financial inclusion on economic growth of Africa. Although Africa is the second-most populous continent in the world with a 3.17% growth rate, it has the biggest proportion of the world's population without access to a bank, at a startling 45% throughout the continent. However, a growing number of Fintech businesses have emerged in Africa in recent years to address the issue of financial inclusion. With this advent, it was imperative to study the phenomenon and ascertain if there is any effect on the economy.
 Methodology: Descriptive and Correlational Research Design were employed to explain and examine the relationship between financial inclusion and economic growth. This study adopted the quantitative research approach. Secondary data from Financial Access Survey (FAS), World Development Indicators (WDI) and The Global Financial Index Report from 2015 – 2021 were examined. The relationships were tested using Generalized Moments Method (GMM) that was preferred over the Ordinary Least Square method (OLS) because of its efficiency and veracity to work with small samples. The data was presented in form of tables and graphs.
 Findings: The results showed that financial inclusion indicators are positively correlated to the economic growth. Using the dimensions of financial inclusion such as availability, penetration, and usage, we can ascertain a positive impact on the economic growth of Africa at large.
 Unique Contribution to Theory, Practice and Policy: The outcome of the study will guide policy makers to identify the most effective strategies to achieve financial inclusion that enhances economic growth. While previous studies identified ATM and CBB as one of the highest financial inclusion indicators that aid economic growth, it is recommended that BCB with a higher correlation be considered too for economic growth. Therefore, governments should focus on building structures and systems that encourage borrowing to stimulate economic growth.

Impact of Financial Inclusion, Globalization, Renewable Energy, ICT, and Economic Growth on CO2 Emission in OBOR Countries

This study examines the short-term and long-term effects of various important determinants such as financial inclusion (FI), information and communication technology (ICT), renewable energy (RE), globalization (GOB), and economic growth (EG) on CO2 emissions in the top 10 emitter countries in the OBOR region based on the collected data for the years 2004 to 2019. This study employed the CS-ARDL technique. Findings demonstrate a strong relationship between FI, ICT, and CO2 emissions in both the long-term and short-term. Renewable sources of energy have been found to have a CO2 emission reduction effect, both in the long and short term. In the long run, there is a negative connection between globalization and CO2 emissions; however, in the short run, this connection is inconsequential, while economic growth (EG) has a positive association with CO2 emission. The development of ICT infrastructure carries the potential to directly mitigate the detrimental effects of CO2 emissions while also playing an important role in raising people’s environmental consciousness. OBOR countries should welcome and encourage clean and green foreign investment that provides technical skills, environmental technology development, and carbon-free processes.

The impact of Financial Inclusion on Bank Profitability and Economic Growth: Evidence from Egypt

The impact of Financial Inclusion on Bank Profitability and Economic Growth: Evidence from Egypt

Institutional quality’s influence on financial inclusion’ impact on bank stability

Using the Generalized Method of Moments (GMM), this study examines the influence of institutional quality on the impact of financial inclusion on the stability of 157 banks in 8 ASEAN countries from 2010 to 2020. The results show that financial inclusion negatively hurts bank stability, and this effect will be improved if it is implemented in an environment of good institutional quality. This is verified again in terms of institutional quality aspects. Corruption control, political stability, government efficiency, and the rule of law have positive effects, while regulatory quality has negative effects. The results are consistent across all three measures of bank stability, Zscore, standardized Zscore, and non-performing loans (NPL). With the above results, the study recommends that national governments take steps to improve institutional quality to increase the stability of banks in promoting financial inclusion.

Impact of financial inclusion on economic growth in secular and religious countries

PurposeEmpirical research on the relationship between financial inclusion and economic growth has neglected the influence of religion or secularism. This study aims to investigate the effect of financial inclusion on economic growth in religious and secular countries.Design/methodology/approachThe financial inclusion indicators are the number of automated teller machines (ATMs)per 100,000 adults and the number of bank branches per 100,000 adults. These two indicators are the accessibility dimension of financial inclusion based on physical points of service. The two-stage least square (2SLS) regression method was used to analyze the effect of financial inclusion on real gross domestic product (GDP) per capita growth and real GDP growth in religious and secular countries.FindingsBank branch contraction significantly increases economic growth in secular countries. Bank branch expansion combined with greater internet usage increases economic growth in secular countries while high ATM supply combined with greater internet usage decreases economic growth in secular countries. This study also finds that bank branch expansion, in the midst of a widening poverty gap, significantly increases economic growth in religious countries, implying that financial inclusion through bank branch expansion is effective in promoting economic growth in poor religious countries. It was also found that internet usage is a strong determinant of economic growth in secular countries.Originality/valueFew studies in the literature examined the effect of financial inclusion on economic growth. But the literature has not examined how financial inclusion affects economic growth in religious and secular countries.

Impact of financial inclusion on the urban-rural income gap—Based on the spatial panel data model

This paper attempts to empirically test the relationship between financial inclusion and the urban-rural income gap using a spatial panel data model. We find that the development of the financial inclusion system widens the urban-rural income gap under the consideration of spatial factors. With regard to the regional analysis, we find that when the level of financial inclusion is low, the urban-rural income gap widens as the level of financial inclusion increases. And the urban-rural income gap narrows with the increase of financial inclusion when the financial inclusion reaches a certain level.