Income Inequality and Regional Index of Financial Inclusion for Islamic Bank in Indonesia

Prastowo, Prastowo; Putriani, Diyah

doi:10.15408/aiq.v11i1.8380

Cited by 7 publications

(6 citation statements)

References 5 publications

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“…In particular, it can be seen that many studies build index of FI based on the multidimensional approach proposed by Sarma (e.g. Huang and Zhang, 2020; Sethi and Sethy, 2019; Prastowo and Putriani, 2019; Goel and Sharma, 2017; Anwar et al , 2017; Park and Mercado, 2015; Yorulmaz, 2013). The reason is easy to identify because this approach is similar to the calculation of the well-known development indicators of the UNDP such as the HDI, the Human Poverty Index (HPI), the Gender development index (GDI).…”

Section: Literature Reviewmentioning

confidence: 99%

Measuring financial inclusion: a composite FI index for the developing countries

Nguyen

2020

JED

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PurposeThe purpose of this paper is to focus on measuring financial inclusion (FI) level for the developing countries.Design/methodology/approachBy using a two-stage principal component analysis method, we construct a composite FI index to measure the degree of FI. Data are collected through secondary sources including World Bank and IMF reports for the period 2012–2018.FindingsWe have built an overall FI index which is considered as a comprehensive measure of FI, a useful tool for policymaking and policy evaluation. Comparison with other studies shows that our FI index corroborates with them.Practical implicationsBuilding a good FI measurement method is important for developing countries. It helps to assess and compare the level of FI of each country and between countries together, made easily and accurately.Originality/valueThis study emphasizes the important role of FI in the economy. From there, an FI solution is integrated into the construction and calculation of its impact on other factors. This will help policymakers to take effective measures to increase FI levels to achieve sustainable economic growth.

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Section: Literature Reviewmentioning

confidence: 99%

Measuring financial inclusion: a composite FI index for the developing countries

Nguyen

2020

JED

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“…The dependent variable financial inclusion (FI) is a multi-faceted notion (Huang and Zhang, 2020; Prastowo and Putriani, 2019; Sethi and Sethy, 2019) with several nuanced components, all or some of which may be relevant to the specific country agenda (Akileng et al , 2018; Sethy and Goyari, 2018; Aduda and Kalunda, 2012; Bankable Frontier Associates, 2010) [13]. Present study conceptualized FI as an acceptance on the account of users to be a part of an organized financial system.…”

Section: Research Tool and Constructsmentioning

confidence: 99%

Role of digital economy and technology adoption for financial inclusion in India

Vyas

Jain

2021

IGDR

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Purpose The study aims to explore the role of digital economy and technology adoption for financial inclusion in the Indian context. Design/methodology/approach A conceptual framework was developed and hypotheses were tested through a survey conducted on 433 educated adults (males and females) residing in different districts of Rajasthan (India). Data was collected through a structured questionnaire and was subjected to confirmatory factor analysis. Structural equation modeling (second-order) was used to validate the measurement model and to test the mediating effect. Findings The measurement model is a confirmatory factor analysis and measures the reliability of the observed variables in relation to the latent constructs and indices shows the overall model fit. Structural model results indicate a complete mediation and a reflective impact (R2 = 0.28) of the extended technology acceptance model on digital economy and financial inclusion relationship. Research limitations/implications The study has taken into account only the perception of educated adults residing more specifically in one geographical area of a country. Thus, it limits the generalization of results in terms of implications to other regions and countries. Practical implications The proposed framework and implications are quite significant for policymakers and service providers to understand the nexus and strategic choices involved in this area. Moreover, understanding of user’s frame dependence would help in the development of digital assistive models that would perhaps mitigate the gap from participation (digital economy) to acceptance (financial inclusion). Originality/value Present study proposed a three-dimensional hypothetical model and conceptualized the digital economy (independent variable) as participation, behavioral intentions measured through the extended technology acceptance model (mediating variable) as adoption and financial inclusion (dependent variable) as acceptance to better understand the nexus. It represents the foremost step and a unique effort in this area. Moreover, the study was empirical and has wider applications both from the perspectives of end-users and service providers.

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“…All these studies (e.g. Huang and Zhang, 2020;Sethi and Sethy, 2019;Prastowo and Putriani, 2019;Goel and Sharma, 2017;Anwar et al, 2017;Park and Mercado, 2015;Yorulmaz, 2013;Gupte et al, 2012) use the same multidimensional approach proposed by Sarma, (2008) in measuring financial inclusion, since they found it more convenient to use such approach as it is similar to the methodology used by UNDP in calculating well known indices such as, human development index (HDI) and human poverty index (HPI). Although these studies provide better measurement to the FI index, however; a major weakness in all these studies is that the weights of each dimension are set arbitrary based on the researcher and thus all dimensions are assumed to have the same effect on FI.…”

Section: Measurements Of Financial Inclusionmentioning

confidence: 99%

Measuring Digital and Traditional Financial Inclusion in Egypt: A New Index

Ismael

Ali

2021

Int. J. Appl. Res. Manag. Econ.

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Digital finance has witnessed rapid development in the last few years that might threaten the way traditional financial services are being used. It creates new opportunities for small businesses and low – income groups that have no or limited access to formal financial services. Therefore, digital financial inclusion plays an important role in enhancing a country`s financial inclusion, meeting some sustainable development goals and achieving higher economic growth. Although few studies took the attempt to measure the inclusiveness of the financial system in Egypt, however, no study did quantify the financial inclusion for Egypt. This paper aims to fill in this gap by contributing to the literature in two ways; first, by introducing a novel comprehensive financial inclusion index for the first time using a three – stage principle component analysis (PCA). Second, we build two separate indices; traditional and digital financial inclusion indices through combining access, usage, and barriers indicators for traditional financial index while for digital financial index we combined access and usage indicators. Findings revealed that both “traditional financial index” and “digital financial index” are equally important in explaining the overall financial inclusion of Egypt and thus, digital finance is seen as a complement rather than a substitute to the traditional financial services. Moreover; our results also revealed that although Egypt has low level of digital financial inclusion (0.31), digital finance is playing a significant and positive role in achieving greater financial inclusion as evidenced by improving the overall index from low (0.41) to relatively high inclusion level (0.52).

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Income Inequality and Regional Index of Financial Inclusion for Islamic Bank in Indonesia

Cited by 7 publications

References 5 publications

Measuring financial inclusion: a composite FI index for the developing countries

Measuring financial inclusion: a composite FI index for the developing countries

Role of digital economy and technology adoption for financial inclusion in India

Measuring Digital and Traditional Financial Inclusion in Egypt: A New Index

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