Inclusion Index Research Articles

Moving up toward sustainable development: Digital finance and income mobility

AbstractThe fact that financial exclusion leads to income inequality is detrimental to sustainable economic growth. Digital finance facilitates the provision of financial services to poor people and has the potential to promote income mobility so that to reduce income inequality. This study uses the Digital Financial Inclusion Index and household data from the China Household Finance Survey to examine the association between digital finance and households’ income mobility. Results show a significantly positive association between digital finance and upward income mobility. Underlying mechanism analyses suggest that digital finance is positively associated with upward mobility through the channels of equal opportunity and financial capability. Further heterogeneous analyses find that asset, education, and age can be moderators in the relationship between digital finance and income mobility. The findings demonstrate the importance of digital finance in promoting the income mobility of disadvantaged people and achieving the goal of inclusive and sustainable development.

Economic Empowerment: The Role of Digital Financial Inclusion in Boosting Gross National Income in Upper-Income Countries

The objective of this study is to examine the impact of the digital financial inclusion index on Gross National Income per Capita in upper-income countries. Using the Principal Components Analysis (PCA) method, the study has constructed a digital financial inclusion index with the data collected from the World Development Indicator for the years 2011–2021. Further, utilizing the Generalized Moments of Method (GMM) technique, the findings reveal a significant positive effect of the digital financial inclusion index on income levels, emphasizing the importance of inclusive financial systems for broader economic participation. Additionally, bank branches remain important, highlighting their complementary role alongside digital services. Moreover, savings significantly contribute to economic growth and stability. Lastly, ATMs play a positively significant role in raising economic development and increasing income levels. Policymakers should prioritise initiatives that enhance digital financial inclusion, strengthen traditional banking infrastructure, and encourage savings. Additionally, investments in accessible banking services, such as ATMs, can significantly contribute to advancing economic development and increasing income levels.

Pengaruh Tingkat Kesehatan Bank Terhadap Inklusi Keuangan

The aim of this research is to analyze the influence of bank health levels on financial inclusion. Variables to measure the level of bank health using the RGEC Component are Non Performing Loans (NPL), Net Open Position (PDN), Loan To Deposit Ratio (LDR), Good Corporate Govermance (GCG), Return on Assets (ROA) Return on Equity (ROE) and Capital Adequacy Ratio (CAR ) on financial inclusion as measured by the Financial Inclusion Index (Index of Financial Inclusion). The analysis test used is multiple linear regression analysis. The population used is banking companies listed on the Indonesia Stock Exchange for the 2018-2022 period and meet the sample selection criteria. There were 20 companies used after the proscess of selecting sample companiesy and outliers. so the total sample is 101. Data was collected through secondary data collection in the form of annual reports published on the Indonesian Stock Exchange. The research hypothesis was tested using multiple linear regression which met the classical assumption test. The analysis results show that NPL, PDN, ROE and CAR. does not have a significant effect on Financial Inclusion, while LDR, GCG and ROA have a significant effect on Financial Inclusion where the significance value of LDR is 0.21, GCG has a significance value of 0.28 and ROA has a significance value of 0.005 which is smaller than alpha, namely 5%

Digital HP finance's role in the economic resilience of enterprises’ digital transformation

To promote digital transformation by enterprises and provide more convenient and efficient financial services, this study analyzes enterprise digital transformation's promotion mechanism and economic influence factors globally and clarifies the role of inclusive digital finance in self-regulation and reducing financing difficulties during enterprise transformation. Finally, an economic resilience model is constructed to select parameters of economic factors, refined into two dimensions: enterprise transformation ability and enterprise upgrading ability. The digital economy is found to be conducive to improving the gross profit margin of enterprises with a significance greater than 0. A regression analysis shows that the estimated coefficients of the digital financial inclusion index, breadth of coverage, and depth of use are all significantly positive, and the different nature of the firms passes the significance test at the 1 % level. Thus, inclusive digital finance reduces the business risk of digital transformation and promotes the development of enterprises in the direction of specialization and innovation.

Nexus between digital financial inclusion and economic growth: a panel data investigation of Asian economies

PurposeThis study aims to investigate the relationship between digital financial inclusion and economic growth in specific Asian countries, emphasizing the exploration of how digital financial inclusion dynamics impact gross domestic per capita income.Design/methodology/approachThe study creates a digital financial inclusion composite index (DFII) by incorporating essential metrics from the Global Findex report. Economic growth is measured using Gross Domestic Product per capita income in its natural logarithmic form (LnPCI), with three control variables– employment-to-population ratio; population growth and inflation. The analysis utilizes a fixed-effect dummy variable model to examine the relationship, considering unobserved country-specific heterogeneity. 30 Asian countries have been selected for the study for the periods 2014, 2017 and 2021 based on their availability, as outlined in Table 4.FindingsThe research revealed a robust positive correlation between the Digital Financial Inclusion Index (DFII) and logarithmic GDP per capita income (LnPCI), indicating higher per capita income with enhanced digital financial inclusion. Employment and population exhibited minimal influence, whereas inflation had a notable negative effect on per capita income. Population growth showed a limited impact. The model demonstrated a high explanatory power for the dependent variable (high R-squared), and the residuals displayed low autocorrelation (Durbin–Watson of 1.96).Originality/valueThis study adds to the existing literature by examining the intricate connection between digital financial inclusion (DFI) and economic growth in 30 Asian countries, employing a comprehensive composite index for analysis.

Research on the mechanism involved in urban social inclusiveness and resident entrepreneurship: Evidence from China

During the urbanization process in China, issues such as the widening wealth gap, class stratification, and social exclusion influenced residents' decisions to pursue entrepreneurship. Inclusiveness is an inevitable trend in new urbanization, and it is also a key factor in promoting residents' entrepreneurship and stimulating the potential for social innovation. Based on three key principles, “fairness, openness, and sharing, “ this paper assesses the relationship, and the internal mechanism driving the relationship, between urban social inclusiveness and resident entrepreneurship. This includes constructing an urban social inclusiveness index, and analyzing data from the 2018 China General Social Survey (CGSS). The key results indicate that urban social inclusiveness has a significant positive effect on resident entrepreneurship. The mechanism analysis shows that urban social inclusiveness can improve the probability of residents being entrepreneurial, by improving risk attitude, promoting class mobility, and expanding social networks. Heterogeneity analysis shows that urban social inclusiveness has a significant impact on the entrepreneurial of local residents, and low-class and high-class residents; urban social inclusiveness has no significant impact on the entrepreneurial choice of transient residents and middle-class residents. Besides, urban social inclusiveness plays a more significant role in promoting residents' choice of survival entrepreneurship, compared with opportunistic entrepreneurship.

Digital financial inclusion and upgrading of consumption structure: Evidence from rural China

Based on the perspective of spatial economy, this paper focuses on the primary effects and spatial characteristics of Digital Financial Inclusion (DFI) on the upgrading of rural consumption structure (URCS) in China, conducting a literature review and theoretical analysis. It then uses statistical data collected over the years and the Digital Financial Inclusion Index (DFII) of Peking University to prepare panel data for 31 provinces in China (aside from Hong Kong, Macao, and Taiwan) from 2011 to 2020 for empirical testing. The results are as follows: DFI can considerably boost URCS, and there is a strong spatial neighbor impact, that is, it is affected by random shocks in surrounding provinces via its spatial effect; DFI has nonlinear characteristics in the process of fostering URCS, with the threshold variables of income level and family sizes; the impact of DFI on URCS is spatially heterogeneous, and the promotion of the eastern region is better than other zones. These results can inform policymakers about rural development and provide valuable references to push forward rural vitalization.

The promotion effect and spillover effect of financial technology on regional innovation: evidence from China

ABSTRACT The development of Financial Technology (FinTech) has transformed financial services by generating new business models and supporting regional innovation by solving the financing constraints of innovative actors. This study assesses regional innovation by constructing a spatial matrix and measuring the level of regional FinTech with the Digital Financial Inclusion Index (DFII) based on the number of patents obtained in each region. It then examines the impact of FinTech on regional innovation, its action mechanism and inter-regional spatial spillover effects from the perspective of financing constraints, filling the gap in direct academic empirical research on the impact of FinTech on regional innovation. The empirical results show that the development of FinTech significantly promotes regional innovation, with a spatial spillover effect. Hence, governments should encourage the integration of finance, emerging technologies and FinTech development. Doing so may help solve the financing constraints of innovative activities, optimise the industry-financing patterns and promote the effective allocation of resources.

Financial Technologies for All MENA citizens: Tackling barriers and promoting inclusion

The digital divide within the financial sector, closely intertwined with the rapid evolution of financial technologies, commonly known as "FinTech," has fundamentally reshaped the landscape of financial services. These innovations have ushered in novel avenues for accessibility, enhancing the security of financial transactions and transcending traditional spatiotemporal constraints. This paper embarks on a journey to address key inquiries within the MENA region. It explores digital financial inclusion levels across MENA countries, identifies segments facing digital financial exclusion, scrutinizes the role of the digital divide, often compounded by a lack of financial literacy, as a barrier to financial inclusion, and investigates how FinTech can serve as a catalyst for inclusive development, with a specific focus on marginalized groups like women and the elderly. Our research employs a comprehensive mixed-methodological approach. We draw from micro-level data sourced from 9053 individuals, extracted from the World Bank's latest Global Findex 2021 database. Our comparative analysis, rooted in a two-step principal component analysis method to create the MENA Digital Financial Inclusion Index (DFII), shedding light on the current state of digital financial inclusion in the MENA region. Despite recent initiatives, our findings underscore that digital financial inclusion in the region remains relatively low. Furthermore, our estimations, based on the Heckman selection methodology, emphasize the pivotal role played by factors such as educational attainment, labor force participation, information and communication technologies, and internet access as primary drivers of digital financial inclusion in the MENA region. Our research contributes a substantial body of empirical evidence regarding digital financial inclusion levels across MENA countries, charting a path toward bridging the digital divide within the financial sector. These strategies encompass enhancing digital financial literacy, catalyzing broader participation in the labor market, and facilitating expanded access to mobile phones and the Internet. In light of our comprehensive dataset, the policy implications drawn from our study are of paramount interest to financial sector regulators in the MENA region, grounded in the real-life experiences of the individuals constituting our database, with the overarching goal of elevating digital financial inclusion in the region to new heights.

Factors of regional financial inclusion in Morocco

The purpose of this paper is twofold: first, provide a comparative analysis of interregional and intraregional inequalities in terms of financial inclusion across Moroccan regions; second, explore the determinants of regional financial inclusion in a panel of 12 Moroccan regions. We used the principal component analysis methodology to construct our regional financial inclusion indexes, and the panel data estimation methodology to identify the determinants of regional financial inclusion. Our regional financial inclusion index shows that the majority of regions have a low level of financial inclusion. This is symptomatic of a very asymmetric distribution. For all regions, we found that intraregional inequalities in access to bank branches by locality/province or prefecture increase as we move away from the region’s main city. Empirical results indicated that a region’s human development level, as proxied by the Human Development Index (HDI), the size of its population, and the industrialization level of its economic fabric are the main determinants of a region’s financial inclusion level. The Moroccan financial system authorities have implemented several reforms (the banking law no. 2‐91‐967 of July 21, 1993) and strategies (National Financial Inclusion Strategy) aimed at promoting financial inclusion in Morocco; however, the increase in the level of financial inclusion at the macrolevel has not benefited all segments of the Moroccan population. This paper is original as, to our knowledge, it is the first to mobilize interregional and intraregional data, as opposed to previous studies that are national‐level oriented. Given the mapping of interregional and intraregional inequalities in access to, and use of, formal financial services, policymakers can rely on our index to formulate useful financial inclusion policies and to target rural localities, provinces or prefectures, and priority regions in Morocco’s National Financial Inclusion Strategy. The financial system should provide financial services tailored to regional financing needs. Moroccan policymakers should focus on filling gaps in levels of regional human development, as the latter is a key factor in regional financial inclusion.

Forecasting Financial Inclusion and Its Impacts on Poverty and Inequality: A Comparative Study in ASEAN

Financial inclusion has played a vital role in eradicating poverty and inequality in some developing countries over the last few decades. In ASEAN, the growth of financial inclusion is so rapid that it reaches every element of society. Therefore, the purpose of this study is to examine forecasts of financial inclusion, poverty, and inequality in ASEAN. In addition, the study also analyzes the correlation between financial inclusion, poverty, and inequality in ASEAN. The study uses the ARIMA and GMM models for the study period from 2000 to 2022. Projections show that most ASEAN countries have experienced an increase in the long-term financial inclusion index, with Thailand leading the ranking, followed by Malaysia. However, the role of financial inclusion in poverty does not seem to be so significant in the short term, most likely due to the still-difficult access for low-income groups.

Paving the Way to Active Living for People with Disabilities:: Evaluating Park and Playground Accessibility and Usability in Delaware.

To evaluate the accessibility and usability of parks and playgrounds in New Castle County, Delaware, for people with disabilities, with a particular focus on identifying environmental barriers that may impede access to these public spaces and potentially affect physical activity (PA) participation for the chronic disease prevention and mitigation. Using a cross-sectional observational design, teams of trained University of Delaware students utilized the Community Health Inclusion Index (CHII) Tool to assess the accessibility of ten suburban and urban parks and playgrounds from April to November 2023. The tool evaluated various elements of public spaces, including public transit, parking, pathways and multi-use trails, entrances, playground equipment, and health promotional materials. Descriptive statistics were calculated for the accessibility and usability of each element. Significant barriers to accessibility and usability were identified. Over half of the sites lacked nearby public transit stops, and many trails and playgrounds were not fully accessible to people with disabilities. While some areas demonstrated good accessibility, such as well-maintained pathways and appropriately designed crosswalks, barriers like uneven surfaces, insufficient curb cuts, and inadequate van-accessible parking spaces were common. Most playgrounds lacked equitable play equipment, with less than half having ground materials suitable for mobility devices. The study underscores the need for substantial improvements in the design, construction, and maintenance of Delaware parks and playgrounds to better support people with disabilities. Enhancing accessibility is crucial for promoting PA participation. The findings support the development of inclusive recreational and PA environments, aligning with the Americans with Disabilities Act, to reduce chronic disease health disparities faced by people with disabilities. This study highlights the need for revised policy measures to enhance park accessibility, advocating for infrastructure improvements and inclusive designs to ensure equitable recreation and physical activity opportunities for people with disabilities.

The THE ROLE OF ISLAMIC FINANCIAL INCLUSION ON POVERTY, INCOME INEQUALITY, AND HUMAN DEVELOPMENT IN INDONESIA

This study empirically analyses the role of Islamic financial inclusion in overcoming poverty, income inequality, and human development problems by employing yearly panel data of 33 provinces in Indonesia from 2014 to 2022. The results show that, except Aceh and DKI Jakarta, all provinces in Indonesia have low Islamic Financial Inclusion Index (IFII). Our analysis reveals that Islamic financial inclusion exerts significant roles in poverty reduction and human development improvement, while it is insignificantly related to income inequality. During the Covid-19 pandemic, the effect on human development of financial inclusion is further strengthened. We further note that the effects of Islamic financial inclusion depends on the levels of Human Development Index (HDI), where poverty reduction and human development improvement are apparent only in provinces with high and very high HDI.

THE IMPACTS OF CASH WAQF LINKED SUKUK EMPOWERMENT PROGRAMS: EMPIRICAL EVIDENCE FROM INDONESIA

This study analyzes the impact of Cash Waqf Linked Sukuk (CWLS) empowerment programs on beneficiaries’ welfare, financial inclusion, social participation, and spirituality. Using questionnaires administered to the beneficiaries and non-beneficiaries of the empowerment programs in Central Lampung, South Tangerang, Trenggalek East Java, and Bima Nusa Tenggara Indonesia, the study constructs three impact indicators: the welfare index, financial inclusion index, and social and spiritual index. The data are analyzed using the difference-in-difference (DiD) method, where the three impact indices are compared between the two groups of respondents in 2021 and 2022. We find that the CWLS empowerment programs improve the welfare and financial inclusion of beneficiaries but have no discernible effect on social and spiritual participation. However, the DID analysis reveals that the overall impacts of welfare, financial inclusion, and social and spiritual participation are not statistically different between beneficiaries and non-beneficiaries in 2021 and 2022. This study provides significant implications for policymakers and nadzir to enhance the impacts of CWLS on socioeconomic development and poverty alleviation.

The Influence of Islamic Financial Literacy, Islamic Financial Inclusion, and Financial Behavior on the Investment Decisions of Generation Z in West Java

The largest number of Generation Z in Indonesia has potential for economic development. This is because the younger generation possesses high levels of technological skills, making them promising investors and key drivers in advancing investment growth in Indonesia. This research aims to analyze the levels of Islamic financial literacy and inclusion and their influence on financial behavior and investment decisions using descriptive analysis and the SEM-PLS method. The research results indicate that the average level of Islamic financial literacy was 77.9% (well-literate) and the level of Islamic inclusion was 80.5% (high). Islamic financial literacy and Islamic financial inclusion significantly affect investment decisions while financial behavior does not significantly affect investment decisions. This study contribute to enhance the index of literacy and financial inclusion in sharia finance for the younger generation, as well as promoting participation in sustainable investments oriented towards sharia principles.

Analisis Pengaruh Inklusi Keuangan, Inflasi dan GDP per Kapita Terhadap Stabilitas Sistem Keuangan di Negara Berkembang Asia Pasifik

Financial inclusion has an important role in financial system stability. Limited access to financial srvices is an obstacl for the community to access formal financial institutions so that financial inclusion is needed to realize a financial system that is more efficient and accessible to the public. This study aims to analyz the effect of financial inclusion, inflation and GDP per Capita on financial system stability in developing Asia Pacific countries. This study uses quantitative descriptive analysis, where descriptive analysis describes the conditions of financial inclusion in each country using the Financial Inclusion Index. In the quantitative analysis, panel data regression method will be used using the FEM model. The results of the analysis show that both financial inclusion and inflation have a significant positive effect on financial system stability, while GDP per Capita has no effect on financial system stability.

The impact of city size on income inclusive growth: A human capital perspective and evidence from China.

This paper methodically investigates the influence of inclusive income growth on city size, examining it through the dual lenses of "income" and "distribution." The analysis leverages meticulously collected panel data encompassing 276 Chinese cities at the prefecture level and above, spanning the period from 2005 to 2019. Theoretical analysis indicates that the effect of city size expansion on per capita income adheres to a 'U'-shaped trajectory, while its influence on the urban-rural income gap manifests an 'inverted U' pattern. Moreover, the inclusive income growth stemming from city size demonstrates notable heterogeneity across various geographic locations and city hierarchies. The findings reveal that human capital serves as the primary mechanism through which city size influences inclusive income growth. After decomposing the income inclusiveness index, it becomes evident that the expansion of city size exerts a more potent direct driving effect on the income of urban residents. On the one hand, city size expansion directly increases rural residents' income levels by improving labor productivity. On the other hand, it facilitates leapfrog income development by inducing the rural labor force to move to cities.

Digital Financial Inclusion and Innovation of MSMEs

Digital inclusive finance is a new type of financial service that combines digital finance with inclusive finance. It is of great significance for improving the accessibility of financial services for small- and medium-sized enterprises and promoting their development. In this paper, we merge the Peking University Digital Financial Inclusion Index of China with the innovation data of micro-, small-, and medium-sized enterprises (MSMEs) from the National Bureau of Statistics, verify the facilitating effect of the development of digital financial inclusion on the technological innovation of MSMEs, and explain the mechanism of the influence of digital finance on the innovation of MSMEs from the perspective of alleviating financing constraints and promoting consumption. Digital inclusive finance has a promoting effect on the technological innovation of enterprises of different technological levels, but the support for high-tech enterprises is still insufficient. The heterogeneity analysis found that there are significant differences in the regional effects of digital financial inclusion; the central and western regions compared to the eastern region have better performance of digital inclusive finance to promote enterprise innovation.

Unveiling the drivers of Africa's digital financial inclusion journey

AbstractThis study aimed to unveil the evolving landscape of digital financial inclusion in African countries during the post‐COVID‐19 era. We examined factors influencing the access and usage of digital financial services and identified population segments facing increased exclusion due to the digital divide. First, by applying principal component analysis to data collected at the country level from 39 African countries in 2014, 2017, and 2022, we developed a digital financial inclusion index. Second, the empirical research utilized a microlevel dataset of 29,042 adults from 29 countries, sourced from the World Bank's Global Findex 2021 database, employing the instrumental variable probit methodology. Comparative analysis showed improvements in digital financial inclusion rankings for Kenya, Lesotho, and Botswana, while Egypt, Sudan, Tunisia, and Niger experienced declines, indicating limited access. Our empirical findings suggest that certain groups, such as women and individuals with limited education and lower incomes, encounter obstacles in accessing digital financial services. Factors such as education level, labor market participation and access to technology and internet infrastructure emerged as crucial in promoting digital financial inclusion. Our sample's representative nature enhances the study's practical implications, guiding public policies and international institutions to accelerate digital financial inclusion in Africa.

Target volumes comparison between postoperative simulation magnetic resonance imaging and preoperative diagnostic magnetic resonance imaging for prone breast radiotherapy after breast-conserving surgery.

This study investigated the differences in target volumes between preoperative magnetic resonance imaging (MRIpre) and postoperative MRI (MRIpost) for breast radiotherapy after breast-conserving surgery (BCS) using deformable image registration (DIR). Seventeen eligible patients who underwent whole-breast irradiation in the prone position after BCS were enrolled. On MRIpre, the gross tumor volume (GTV) was delineated as GTVpre, which was then expanded by 10 mm to represent the preoperative lumpectomy cavity (LC), denoted as LCpre. The LC was expanded to the clinical target volume (CTV) and planning target volume (PTV) on the MRIpre and MRIpost, denoted as CTVpre, CTVpost, PTVpre, and PTVpost, respectively. The MIM software system was used to register the MRIpre and MRIpost using DIR. Differences were evaluated regarding target volume, distance between the centers of mass (dCOM), conformity index (CI), and degree of inclusion (DI). The relationship between CILC /CIPTV and the clinical factors was also assessed. Significant differences were observed in LC and PTV volumes between MRIpre and MRIpost (p < 0.0001). LCpre was 0.85 cm3 larger than LCpost, while PTVpre was 29.38 cm3 smaller than PTVpost. The dCOM between LCpre and LCpost was 1.371 cm, while that between PTVpre and PTVpost reduced to 1.348 cm. There were statistically significant increases in CI and DI for LCpost-LCpre and PTVpost-PTVpre (CI = 0.221, 0.470; DI = 0.472, 0.635). No obvious linear correlations (p > 0.05) were found between CI and GTV, primary tumor volume-to-breast volume ratio, distance from the primary tumor to the nipple and chest wall, and body mass index. Despite using DIR technology, the spatial correspondence of target volumes between MRIpre and MRIpost was suboptimal. Therefore, relying solely on preoperative diagnostic MRI with DIR for postoperative LC delineation is not recommended.