Determinants of Financial Inclusion in Tribal Districts of Odisha: An Empirical Investigation

Abstract

The study has tried to investigate the status of the financial inclusion of tribal people in two tribal concentrated districts, namely Bolangir and Mayurbhanj, in the state of Odisha. Field investigations were undertaken to find out the status of financial inclusion in six villages of these two districts where the proportion of the tribal population was larger than that of the total population. Primary data were collected from 300 households by using a semi-open survey schedule. It was found that about 71.7 per cent of households had no savings bank accounts; 70.7 per cent were not involved in self-help group activities and 97.7 per cent did not have post office savings accounts. Additionally, a logit regression model was used to identify the various determinants of financial inclusion of tribal households. The results revealed that years of education attained by the household head, size of private-owned land, total annual income of the household and participation in the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) were significant determinants for financial inclusion among tribal people.

How financially inclusive the Asian’s are – an empirical analysis

“…Similarly, Sen (1999) argues that the availability and easy access to finance have very significant effect on other economic entitlement. Including the excluded in the formal financial system aims to influence poverty and also inequality through providing ease of access to various financial services to the vulnerable sections of society (Sahoo et al, 2017). A number of studies in this regard suggest that both poverty and inequality are negatively associated with access to formal financial services (Galor and Zeira, 1993;Honohan, 2004;Burgess and Pande, 2005;Buckland et al, 2011;Clarke et al, 2006;Beck et al, 2007;Jeanneney and Kpodar, 2011).…”

Spatial Determinants of Financial Inclusion over Time

“…Sarma, 2008;Chattopadhyay, 2011;Gupte, Venkataramani, & Gupta, 2012;Arora, 2014;Chakravarty & Pal, 2013;Wang & Guan, 2017) and (ii) what factors are associated with financial inclusion (refer to, e.g. Beck & De la Torre, 2006;Chithra & Selvam, 2013;Martinez, Hidalgo, & Tuesta, 2013;Leeladhar, 2006;Rao, 2007;Chakravarty & Pal, 2013;Fungáčová & Weill, 2015;Swamy, 2014;Corrado & Corrado, 2015;Honohan, 2008;Sahoo, Pradhan, & Sahu, 2017;Wang & Guan, 2017;Burgess & Pande, 2005;Levine, 2005).…”

“…Finally, we took care to use the majority of accessible variables which is involved in many studies in the literature (refer to, e.g. Beck & De la Torre, 2006;Chithra & Selvam, 2013;Martinez et al, 2013;Leeladhar, 2006;Rao, 2007;Chakravarty & Pal, 2013;Fungáčová & Weill, 2015;Swamy, 2014;Corrado & Corrado, 2015;Honohan, 2008;Sahoo et al, 2017;Wang & Guan, 2017;Burgess & Pande, 2005;Levine, 2005). We also used Bank Stability Indexes generated by authors and The Worldwide Governance Indicators from World Bank as the explanatory variables to decipher which factors explain the changes in IFI scores.…”

Antecedents of Financial Inclusion: Evidence from Tripura, India

“…Moreover, the probability of inclusion of financial needs in the official banking system is high and it leads to saving capacity (Beck, Demirgüç-Kunt, & Martines Peria, 2006). However, the economic status of the people such as possession of landed property or possession of a house increases the chances of usage of the available products and services in banking (Collins & Daryl, 2009;Bhattacharyay, 2016;Sahoo, Pradhan, & Sahu, 2017). Asset endowment is also one of the essential factors of reducing poverty (Donovan & Poole, 2013).…”

“…The traditional microfinance schemes are of advantage to "the economically active poor individuals" and they are not the "poorest of the poor" if the basic definition is considered (Premchander & Harper, 2018). These are age and education (Johnson & Nino-Zarazua, 2007;Sahoo, Pradhan, & Sahu, 2017), income (Aslan, Delchet, & Monique, 2012;Kumar, 2013), number of adult family members (Roy, Singh, & Singh, 2017a;Sinclair, 2013), economic status (Wangwe, 2004;Harris, Loundes, & Webster, 1999), location, gender and religion (Akpandjar, Quartey, & Abor, 2013;Yadav & Sharma, 2016;Demirgüç-Kunt, Klapper, & Randall, 2013;Bhattacharyay, 2016). Regarding age, it is the aim to develop the generation which is upcoming having economic knack and educating the youth regarding its usefulness (Billimoria, Penner, & Knoote, 2013).…”