Measuring Financial Inclusion for Asian Economies

Sarma, Mandira

doi:10.1057/978-1-137-58337-6_1

Cited by 170 publications

(321 citation statements)

References 14 publications

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“…These financial indicators, however, do not provide a complete measurement of financial inclusion. Very few studies have created an index of financial inclusion using different financial dimensions and methodologies (Chakravarty and Pal 2013;Chattopadhyay 2011;Sarma 2015;Lenka and Bairwa 2016).…”

Section: Contribution Of This Studymentioning

confidence: 99%

Has expansion of mobile phone and internet use spurred financial inclusion in the SAARC countries?

Lenka

Barik

2018

Financ Innov

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Exclusion from the mainstream financial world is a burden on the poor of many countries. The proliferation of new mobile and online financial services, such as e-banking, money transfers, and payment processing has the potential to provide access to basic financial products and services to financially excluded people. The purpose of this study was to investigate the effects of the growth of mobile phone and Internet use on financial inclusion in the South Asian Association for Regional Cooperation (SAARC) countries from 2004 to 2014. We applied principal component analysis to construct a financial inclusion index that served as a proxy variable for the accessibility of financial services in the SAARC countries. Using three different models-the fixed effect, random effect, and panel correction standard errors modelsthis study discovered a positive and significant relationship between the growth of financial inclusion and expansion of both mobile phone and Internet services. Moreover, an empirical study of the control variables showed that the levels of income and education were positively associated with financial inclusion, whereas the size of the rural population and unemployment were negatively related to financial inclusion. In addition, the empirical estimates posit a unidirectional causal flow from the growth of mobile and Internet services to expanded financial inclusion in the SAARC countries.

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Section: Contribution Of This Studymentioning

confidence: 99%

Has expansion of mobile phone and internet use spurred financial inclusion in the SAARC countries?

Lenka

Barik

2018

Financ Innov

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“…Each of these dimensions is determined by several demand-side individual level indicators for usage and barrier and supply-side country level indicators for access. For example, the proportion of people having a bank account is a measure of the penetration of the banking system, while the data on the number of bank branches and the number of ATMs per 100,000 adults are a measure of the availability dimension (Sarma, 2015). Furthermore, the percentages of loans and deposit accounts in the population, the number of transactions per deposit account and the number of electronic payments show the level of usage of financial products and services (Demirgüç-Kunt et al, 2015).…”

Section: Methodsmentioning

confidence: 99%

“…Measures of financial sector development include data on volume of credit to the private sector and deposit mobilized from the private sector as a proportion of the country's GDP (Sarma, 2015), the presence of bank branches compared to the population or the presence of banks (Ergungor, 2008) and the intermediation degree, i.e., private credit to deposit (World Bank, 2006). On the demand side, we thus used data on banking activity (loans and deposits, number of borrowers and depositors) and on the supply side, data on the structure of the banking system (ATM, branches, institutions).…”

Section: Methodsmentioning

confidence: 99%

Financial and Social Inclusion and Financial Sector Development: An Outline in the EU28

Federico¹,

Milioli²,

Notte³

et al. 2020

American Journal of Economics and Business Administration

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The paper describes the status of the European Union member countries, from the point of view of both financial and social inclusion and the development of the financial sector. The aim is to identify clusters of countries, with internally homogeneous but externally heterogeneous characteristics. The analysis shows if social exclusion and financial exclusion coexist in the same countries, considering the development of the financial sector. From a methodological point of view, the research collects and analyzes data extrapolated from different sources in the period 2016-2017 and it is conducted through a Principal Component Analysis and a Cluster Analysis.

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“…Based on Sarma and Pais [24], Sarma [47] improved the calculation method of the inclusive financial development index. In contrast to the calculation method of the normalized inverse Euclidian distance between the achievement point and the ideal point in the past, Sarma [47] uses a simple average of the normalized Euclidian distance between the achievement point and the worst point and the normalized inverse Euclidian distance between the achievement point and the ideal point as formula (4). Therefore, we use this new method to recalculate the CRIFI, and apply the modified index to the benchmark model (3).…”

Section: Robustness Testmentioning

confidence: 99%

Inclusive Financial Development and Multidimensional Poverty Reduction: An Empirical Assessment from Rural China

Yang

Chenyu

2019

Sustainability

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Inclusive finance is often considered to be a critical element that makes growth inclusive, as access to finance can enable the poor to lift themselves from income poverty. However, can it play such a role when the poor are in multidimensional poverty? Why does financial exclusion and poverty still exist in countries with vigorous development of inclusive finance? We build an evolutionary game model to analyze the equilibrium strategies of inclusive financial institutions and the poor in poverty reduction activities to find the answers. As there is a high incidence of poverty and serious financial exclusion in rural areas of China, we test the poverty reduction effectiveness of inclusive financial development on the poor with different labor capacity in rural China from 2010 to 2016 based on survey data of China Family Panel Studies and relevant statistics collected from 21 provinces. Our study finds there are differences in poverty alleviation effects of inclusive financial development among the poor with different labor capacities; if financial institutions target the service precisely to the working-age population in rural areas, they will achieve the dual goals of maintaining institutional sustainable development and alleviating poverty; And the development of inclusive finance in aspects of permeability, usability, and utility can significantly reduce multidimensional poverty. Therefore, to further improve the multidimensional poverty reduction performance and stimulate the endogenous motivation of the poor, it is necessary to strengthen the support for financial resources served to the working-age population, and to improve the development of rural inclusive finance in aspects of quality and affordability.

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Measuring Financial Inclusion for Asian Economies

Cited by 170 publications

References 14 publications

Has expansion of mobile phone and internet use spurred financial inclusion in the SAARC countries?

Has expansion of mobile phone and internet use spurred financial inclusion in the SAARC countries?

Financial and Social Inclusion and Financial Sector Development: An Outline in the EU28

Inclusive Financial Development and Multidimensional Poverty Reduction: An Empirical Assessment from Rural China

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