Role Of Financial Inclusion Research Articles

The role of financial inclusion in adoption of solar photovoltaic systems: A case of Uganda

Globally, renewable energy technologies, such as solar photovoltaic (PV) contribute significantly to sustainable development. However, adoption of solar PV is limited in many developing countries. Governments have rolled out policy strategies like financial inclusion to stimulate deployment of modern energy technologies. Notwithstanding, little is known about financial inclusion and household solar PV adoption. Using two waves of Uganda National Household Survey data covering 28,913 households, this paper examines the effect of financial inclusion on adoption of solar PV. The study employed logit model and pooled ordinary least squares for estimation. Taking endogeneity into account, we find that financial inclusion has a strong positive effect on solar PV adoption. The estimates show that unit increase in financial inclusion increases the likelihood of residential solar PV adoption by 3.6% (p < 0.01). This finding is consistent across all robustness checks. The findings further suggest that use of mobile money is more important for solar PV adoption. The study identified household income and education as possible pathways through which financial inclusion influences solar PV adoption. Thus, policy makers and renewable energy practitioners should continue prioritizing financial inclusion particularly use of mobile money and financial remittances so as stimulate adoption of solar PV.

Research methods on the role of financial inclusion, energy efficiency and energy R&D: Evidence from G7 economies

Countries around the globe are rapidly targeting energy efficiency goal achievement due to the unproductive and inefficient use of traditional energy sources. Several factors are discovered that are critical for energy efficiency in the region. Still, there are many economic, financial, energy, and research and development factors that could influence energy efficiency and remained ignored in the scholarly research, which is important from economic growth as well as environmental sustainability perspective. This research contributes to the existing literature by providing novel factors affecting energy efficiency in the developed nations. Specifically, the current study investigates the influence of financial inclusion, energy R&D, political-economic-financial risk index, and the energy-related inflation on the energy efficiency of G7 economies covering the period from 2004 to 2020. This study employed the slope heterogeneity and cross-section dependence test, which led to using the second-generation unit root test. For empirical estimations, the current study utilizes the panel Quantile regression, and the outcomes reveal that all the considered variables positively influence the energy efficiency in the region. However, the influence of these variables increases except for the energy-related inflation when moving from lower quantile Q0.25 to medium Q0.50 to higher quantile Q0.75, respectively. The estimated results are found robust, confirmed by the FMOLS estimator. Based on the empirical findings, it is recommended that financial inclusion and energy-related research and development be enhanced to achieve the region's energy efficiency.

Effect of Capital Structure on the Financial and Social Performance of Indian Microfinance Institutions

This study investigates the effect of capital structure on the social and financial performance of microfinance institutions (MFIs), which have a double bottom line objective of outreach and financial sustainability. Generalized method of moments (GMM) and instrumental variable (IV) estimation were used on the panel data set of 46 non-banking finance companies (NBFCs)-MFIs from 2013–2014 to 2018–2019. NBFC-MFIs are formed after the transformation of NGO-MFIs to access market-based sources of funds to increase their outreach. The results show that Indian MFIs are highly leveraged and have bidirectional causality between capital structure and financial and social performance variables. The study found a positive and significant relationship between capital structure and social and financial dimensions of the NBFC-MFIs. It shows that NBFC-MFIs can maintain the dual objectives even after transformation. The study contributes to the scarce literature by emphasizing the role of capital structure on the performance of MFIs, which are playing an essential role in financial inclusion.

Lifting You up or Dragging You Down? The Role of Financial Inclusion in Poverty Transitions Among Italian Households

We estimate the effect of financial inclusion on transition probabilities into/out of poverty. By exploiting a longitudinal sample of Italian households between 2002 and 2016, we find that financial inclusion is effective in both reducing the likelihood of entering poverty and helping the poor to climb out of it. According to our estimates, access to deposit accounts reduces the risk of falling below the poverty line by 2.7 percentage points (pp) and increases the chance of exiting poverty by 4.4 pp. Significance and magnitude of such effects are confirmed when considering different poverty thresholds and definitions, alternative proxies for financial inclusion as well as alternative empirical strategies.

The role of financial inclusion in improving household well‐being

AbstractUsing a nationally representative household survey data collected from Ghana, this paper investigates the relationship between financial inclusion and household well‐being. The paper computes a comprehensive index for financial inclusion incorporating all its dimensions: availability, accessibility, usage and quality. Our econometric analyses employ both discrete and continuous models to produce robust results. The main result indicates that there are significant welfare gains from increased financial inclusion irrespective of its measure and control for endogeneity. The results also suggest that enhanced financial inclusion increases the likelihood of improving food consumption, medical treatment, cash income and school attendance outcomes. Thus, there is a clear policy implication: increasing financial inclusion will significantly contribute to the attainment of some key Sustainable Development Goals (SDGs).

Impact of financial inclusion on the effectiveness of the interest rate channel of monetary policy transmission in West Africa

Monetary policy has been identified as an indispensable tool for macroeconomic stabilization. The transmission of monetary policy is conditioned on the effectiveness of the monetary policy intermediate targets of which interest rate, exchange rate depreciation and money growth are important. Many factors have been shown to affect monetary policy, of which, the role of financial inclusion is important. However, empirical studies on the relationship between financial inclusion and the interest rate of monetary policy transmission are few; as a result, this study examined the impact of financial inclusion on the effectiveness of the interest rate channel of monetary policy transmission in West Africa. In doing this, the study employed a panel dataset consisting of 15 West African countries for periods between 2005 and 2020. The data were from a secondary source, in particular, the World Bank’s World Development Indicator database. The analysis involves descriptive statistics and inferential analysis of the Generalized Method of Moments approach. The result of the generalized methods of the moment showed that financial inclusion improves the effectiveness of the interest rate channel of monetary policy transmission. Based on findings, this study recommends that policy authorities in West Africa should embark on a renewed commitment to ensuring access for all in West Africa.

Role of financial inclusion and export diversificationin determining green growth: evidence from SAARC economies.

This study quantifies the impact of financial inclusion and export diversification in attaining the target of green growth for SAARC economies during the period 2000 to 2019. For the analysis purpose, this study employed second-generation econometric techniques that deal with heterogeneity and cross-sectional dependence issues. To this end, CUP-FM and CUP-BC are used to investigate the long-run dynamic equilibrium relationship among the variables of interest. The outcomes show that financial inclusion and institutional quality are eco-friendly variables and play a vital role in attaining green growth. In contrast, export diversification and FDI are inversely related with green growth in SAARC economies. Furthermore, a unidirectional causality running from financial inclusion to green growth and financial inclusion to export diversification is observed. On the basis of investigated outcomes, this research suggests essential policy recommendations to attain green growth.

Credit unions in chile and their role in financial inclusion

Credit unions in chile and their role in financial inclusion

Does financial inclusion promote a green economic system? Evaluating the role of energy efficiency

There are very few studies on the role of financial inclusion and energy efficiency in promoting a sustainable environment in the existing literature. These studies do not address or link financial inclusion to CO2 emissions in any way. Therefore, the purpose of this study is to look into the role of financial inclusion and energy efficiency on carbon emissions, as well as exports, imports, and gross domestic product (G.D.P.) in the BRICS economies from 1990 to 2020. The study additionally considers the panel data's integration, cointegration, cross-country interdependence, and heterogeneity features, resulting in reliable findings and well-founded policy recommendations. The panel Westerlund cointegration tests confirm the long-run relationships among CO2 emissions, financial inclusion, energy efficiency, exports, imports, and G.D.P. Furthermore, the long and short-run outcomes of CS-ARDL revealed that financial inclusion, imports size, and G.D.P. raise CO2 emissions, while energy efficiency and exports size reduce CO2 emissions. The study proposes increasing financial inclusion for controlling pollution and achieving sustainable environmental goals in light of these findings. Public-sector efforts are needed to integrate financial inclusion goals with continued improvements in energy efficiency and environmental policies.

Role of Financial Inclusion and Natural Resource for Green Economic Recovery in Developing Economies

Role of Financial Inclusion and Natural Resource for Green Economic Recovery in Developing Economies

The Impact of Financial Inclusion and Islamic Fintech on the Challenges of the SDGs (Sustainable Development Goals)

Islamic fintech has the potential to encourage financial inclusion by meeting the needs of the non-bankable market segment. Therefore, the role of fintech in accelerating financial inclusion for the community is very significant because fintech has various approaches to assessing creditworthiness or financing for its customers. the role of financial inclusion will lead to the achievement of the challenges of the Sustainable Development Goals (SDGs). Poverty alleviation is one of Indonesia's development priorities. This is in line with the first commitment to the Sustainable Development Goals (SDGs), namely reducing poverty and hunger. The results show that Islamic Fintech and financial inclusion have a significant influence on the SDGs.

Financial inclusion as mediator in the relationship of social capital and financial literacy towards business performance of the trade sector SMEs in Pekanbaru, Indonesia

This study analyzes SMEs’ performance problems in the trade sector in Pekanbaru by using several internal company factors to build a competitive strategy till the year 2021. The variables used in this study consisted of social capital, financial literacy, financial inclusion, and business performance. The study used 300 SMEs consisting of 26 wholesalers and 274 retailers in Pekanbaru, Riau. We used a structural equation model (SEM) approach with AMOS for hypothesis testing. The results show that social capital and financial literacy have a significant direct effect on the SME businesses’ performance in the trade sector in Pekanbaru. This shows that social capital and financial literacy are two determining factors for the success of SME businesses. However, social capital does not affect business performance indirectly through the role of financial inclusion

Model pengentasan kemiskinan melalui peran financial inclusion di Indonesia

The poverty rate in Indonesia is quite high compared to other Asean countries. Indonesia has a poverty rate of 9.8% higher than Thailand and Malaysia. The financial sector through financial inclusion is an alternative policy implemented by the government as an effort to relieve poverty in Indonesia. The fact in Indonesia there is still quite a lot of people who have not been able to access financial services, especially banking sector. This study aims to determine the model of poverty alleviation through the role of financial inclusion in Indonesia. The data analysis technique used PLS-SEM. The results showed that two of three financial inclusion variables, namely access and usage had a significant negative effect on poverty, which means when the role of financial inclusion in Indonesia increases can reduce the poverty in Indonesia. Access variable has a negative effect on poverty which means that increasing public access to debit card ownership, bank accounts, and e-money cards can reduce poverty in Indonesia. Usage variable has a negative effect on poverty which means the increasing use of financial services as reflected with the volume of debit transactions and credit transactions, it can reduce poverty in Indonesia.

The Role of Financial Inclusion in Eliminating Household Poverty: Evidence from the Rural Wa West District of Ghana

It has been acclaimed that financial inclusion is one sure way of moving the poor out of poverty. In Ghana, poverty levels are particularly high in the Northern regions. In the Wa West district of the Upper West Region, the poverty incidence rate is as high as 92.4% (GSS, 2015). In this study, the researchers survey 378 households across the Wa West district to ascertain and examine the level of poverty and financial inclusion among households. Specifically, we examine the extent to which financial inclusion affects household income in the district. The study confirmed high levels of poverty and extremely low levels of financial inclusion among households in the district. The findings showed that households that had less access to financial products and services, had low levels of household income making them poor. Our findings confirm that in our sample, financial inclusion is a significant factor in determining household income and by extension, poverty levels. Secondly, using ordinary least squares (OLS) estimation adjusting for robustness, we found that access to credit and withdrawal frequency significantly affect household expenditure, a proxy for poverty. We also found very low levels of education in our sample but ironically, the households did not consider education a major intervention to improve their standard of living, rather preferring farming and livestock support. We recommend that governments and other policymakers adopt a two-pronged approach by increasing financial inclusion in rural areas whilst tackling low poverty level issues.

Financial inclusion and poverty: evidence from Turkish household survey data

ABSTRACT Even though poverty is highly felt in developing economies, the lack of relevant and complete micro-level data limits understanding which households are more exposed to poverty and the role of financial inclusion in poverty in these countries. This research analyzes the effects of financial inclusion proxied by a multidimensional index on three poverty measures (the lowest-income poverty line, a lower-middle-income line, and an upper-middle-income line) by employing the recent Turkish Household Budget and Consumption Expenditure Survey data with 11,595 complete answers. In addition to the application of logistic regressions, this study addresses possible endogeneity issues by using access to the nearest bank as an instrument in a two-stage least-squares regression and employing the novel method as a robustness check. Empirical results point out that an increase in financial inclusion decreases poverty in Turkey. The adverse effect of financial inclusion on poverty is validated through a few robustness and sensitivity analyses. The outcome also indicates that health expenditure and income are essential through which poverty is influenced by financial inclusion. Thus, policies are required to enhance the financial inclusion of households to alleviate poverty. Further discussions are presented in this study.

The Impact of Bank Behavior, Financial Literacy on Investment Decisions, Mediation of Financial Inclusion and Debt Behavior. Study on Working Capital and Investment Debtors at Regional Development Bank Yogyakarta Indonesia

Bank behavior, financial literacy, financial inclusion, debt behavior, and investment affect the economic growth of an industry. The purpose of this research is to examine the effect of bank behavior, financial literacy, financial inclusion, debt behavior on investment decisions of working capital and investment debtors in the Regional Development Bank of Yogyakarta. Indonesia. Examine the mediating role of financial inclusion, debt behavior on investment decisions. The research sample are 280 debtors. The analysis model used mediation regression with the PLS program. The results showed that: Bank behavior has an effect on financial inclusion. Bank behavior has an effect on debt behavior. Financial literacy has an effect on financial inclusion. Financial literacy has an effect on debt behavior. Financial inclusion mediates the effect of bank behavior on investment decisions. Debt behavior mediates the effect of financial literacy on investment decisions. The managerial implication of this research is: the flexibility of providing credit to customers, must be followed by control of the use of funds. Financial literacy, financial inclusion and higher debtor debt behavior will increase the movement of the industry. The right investment will improve entrepreneurial and banking performance.

Does financial inclusion limit carbon dioxide emissions? Analyzing the role of globalization and renewable electricity output

AbstractOn the role of financial inclusion in terms of promoting a sustainable environment, very limited number of studies are available in the existing literature. These studies do not directly address or link financial inclusion with carbon dioxide emissions. Therefore, this study aims to specifically investigate the effects of financial inclusion on carbon dioxide emissions along with the role of globalization and renewable electricity generation for the case of the emerging seven economies over the 2004–2016 period. This study uses panel quantile regression analysis for estimations, which takes into account the non‐normality issue of the data. The long‐run relationships among carbon dioxide emissions, financial inclusion, renewable electricity generation, globalization, and economic growth are confirmed by Kao and Johansen panel cointegration tests. Besides, the results from quantile regression analysis confirmed that financial inclusion is linked with carbon dioxide emission reductions at the 25th and 50th quantiles; however, it cannot explain the variations in the carbon dioxide emission levels at the 75th and 95th quantiles. Moreover, globalization and renewable energy electricity are found to curb carbon dioxide emissions at all quantiles. Further, the results confirmed the EKC hypothesis for E7 countries at all the quantiles. In line with these findings, this study recommends enhancing financial inclusivity, promoting globalization, elevating renewable electricity generation capacities, and ensuring greener economic growth to lower down the carbon dioxide emission levels across the E7 countries.

A Study on Role of Financial Inclusion on Regional rural Banks with Reference to Kerala Gramin Bank

In simple words financial inclusion is defined as “the process of ensuring access to financial services and timely and adequate credit where needed by vulnerable groups such as weaker sections and low income groups at an affordable cost” (Rangarajan, 2008). The main aim of financial inclusion (FI) is to provide easy access to financial services to the underprivileged population of country. It is an attempt to raise the underprivileged population by making available of finance and there by achieving inclusive growth. This paper studies the financial inclusion of regional rural banks in Kerala. Both primary and secondary data used for the study.197 respondent’s data were collected through questionnaire and surveys. The research methodology used in this study was correlation analysis and descriptive statistics. The result of the correlation analysis shows there is positive correlation between independent and dependent variables also the peoples were aware about the inclusions that introduced and newly adapted by the banks. So, the aim of this study is to understand the various financial inclusion measures taken and its impact on creating awareness, benefits and better services to its customers by KGB.

The Financial Stability in Developing Economy: Role of Financial Inclusion and Financial Efficiency

This paper explores the asymmetric nexus between financial inclusion, financial efficiency and financial stability, within asymmetric and symmetric Autoregressive Distributed Lag (NARDL) framework, covering the period from 2003 to 2018, using quarterly data in Nigeria. The findings showed that symmetric technique of econometric test detects, that financial stability is augmented by better improvement in financial inclusion in short-run, while asymmetric technique observed that short-run positive effect, and negative effect likewise long-run decrease in this index heightened the level of financial stability in this economy. This study further found trade-off existence, between financial efficiency and financial stability in both symmetric and asymmetric techniques of econometric tests, which is consistent with some empirical findings. The results based on the model and empirical data indicate that, the monetary authority needs to follow prudent and adequate supervisory standard in pursuing financial inclusion, financial intermediaries should be accompanied with good institutional quality, including financial awareness that should be enhanced through financial teachings in all sectors both in the urban and rural areas of the economy.&#x0D;

The role of Financial Inclusion in driving Women Empowerment: A Study of Ghettos

The role of Financial Inclusion in driving Women Empowerment: A Study of Ghettos