The Level of the Financial Inclusion in the African Countries and in the World Group Regions

Adalessossi, Kokou

doi:10.17265/1537-1514/2015.03.002

Cited by 7 publications

(15 citation statements)

References 3 publications

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“…Five variables that are directed at FI have led to one PC in the analysis. Based on the discriminant scores, the countries were classified as low-level and high-level FI countries [20]. Similarly, for this analysis, the loading of the first component could be used to identify the behavior of the FI in South Asian countries, and further established an upward positive trend of FI for each of the South Asian countries throughout the 15 years.…”

Section: Pretest Analysis Resultsmentioning

confidence: 99%

Financial Inclusion’s Role in Economic Growth and Human Capital in South Asia: An Econometric Approach

2021

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Many of the 2030 sustainable development goals have targeted the strengthening of financial inclusion, which is currently a key policy priority on the agendas of most governments in developing nations. The process of facilitating banking and financial services for individuals is called financial inclusion, which supports growth and the broader development goals of an economy. Although economic growth and human capital development indices have been analyzed using different proxy variables, insufficient attention has been paid to constructing a composite index for measuring this to achieve greater sustainability in terms of the economy, communities, and the environment. This study sought to address this gap using secondary data from eight countries in South Asia from 2004 to 2018. A financial inclusion index was developed through principal component analysis using an econometric approach of panel data with vector error correction models and a Granger causality test. As per the results of the study, financial inclusion has a long-run impact on human capital development in South Asian countries, whereas it has a short-run positive impact on economic growth. Domestic credits to the private sector also impact the short-run growth and human capital development in the economy. This ensures the confidence of vulnerable communities in their economy, as well as information management, and allows for quality enhancements of transactions with fewer environmental impacts. Government intervention to improve access to financial services, including ATMs and commercial banking, is one policy allowing digital finance to accelerate the achievement of sustainable development goals in South Asian countries.

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Section: Pretest Analysis Resultsmentioning

confidence: 99%

Financial Inclusion’s Role in Economic Growth and Human Capital in South Asia: An Econometric Approach

2021

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“…Many researchers focused on the measuring the status of financial inclusion, namely measuring financial inclusion index (Sarma, 2008; Adalessossi and Kaya, 2015; Allen et al, 2012, etc.) [5,6,14]. However, accurate measurement of the status financial inclusion is only the first step of studying financial inclusion, and the next step is how to achieve the effective development of financial inclusion and make it sustainable.…”

Section: Discussionmentioning

confidence: 99%

“…Cámara and Tuesta (2014) relied on demand and supply-side information to measure the extent of financial inclusion at country level for eighty-two developed and less-developed countries [20]. With Global Findex Database, Adalessossi and Kaya (2015) measured the degree of financial inclusion in the African countries [6]. They found out of the 41 total countries 27 had a low level in financial inclusion whereas 14 had a high level.…”

Section: Literature Reviewmentioning

confidence: 99%

“…With the interest of people from all over the world, financial inclusion has become a hot topic in academia.The present research can mainly be divided into two categories. One was to discuss on measuring the financial inclusion index or the level of financial inclusion with country level or zone level data (Sarma, 2008; Adalessossi and Kaya, 2015; Ambarkhane et al, 2016; Kumari, 2017; Wang and Guan, 2017) [5][6][7][8][9]; the other was exploring the correlation between financial inclusion and the development of economic factors or society factors (Naceur and Ghazouani, 2007 [10][11][12][13][14][15][16][17][18]. In particular, Kim et al (2018) studied the correlation between financial inclusion and economic growth in Organization of Islamic Cooperation (OIC) countries [18].…”

Section: Introductionmentioning

confidence: 99%

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The Sustainable Development of Financial Inclusion: How Can Monetary Policy and Economic Fundamental Interact with It Effectively?

Yin

Chen

et al. 2019

Sustainability

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It is necessary to analyze the relationship between financial inclusion and circumstances-monetary policy and economic fundamentals, which has a practical reference value for policy makers. This paper studies the impact of the circumstances on financial inclusion factors by using a vector autoregressive method. Empirical results show that monetary policy has a short-term positive impact on financial inclusion factors, while the economic fundamental has the opposite, which means that the positive monetary policy promote the development of financial inclusion in the short term and the sudden change of the economic situation will make it harder. Based on the data of the World Bank and the situation of China, we make an analysis and comparison of the empirical results, and draw two implications: first, the sustainable development of financial inclusion needs a suitable circumstance; second, the appropriate coordination and mutual facilitation of economic fundamentals and finance is conducive to the sustainable development of financial inclusion.

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“…Fourth, Camara and Tuesta (2014) studied 82 countries (both developed and less developed) and relied on the information of demand and supply. Fifth, Adalessossi and Kaya (2015) calculated the financial inclusion index of African countries with the help of the Global Findex database, and they reported that 27 African countries have lower financial inclusion and only 14 African countries have greater financial inclusion out of total 41 countries. Sixth, Ambarkhane et al (2016) measured the financial inclusion index through non-banking financial companies and picked the insurance companies’ pensions plan.…”

Section: Literature Reviewmentioning

confidence: 99%

Cross-country income variations and inclusive financing

Safdar

Tian

Amin

2020

JFEP

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Purpose This study, a symposium, aims to explore the determinants of financial inclusion, impact of cross-country income-variations on financial inclusion, do high-income countries really uplift the financial inclusion and does the higher financial inclusion index indicate the larger economy? Design/methodology/approach This study adopts the panel data model to investigate the impact of high-income countries and low- and middle-income countries on financial inclusion. However, this study further adopts the principal component analysis rather than Sarma’s approach to calculate the financial inclusion index. Findings Based on the Data of World Bank, United Nations, International Monetary Fund, World Development Indicators, this study concludes that there is no nexus between income variations and financial inclusion, as the study reveals that some low- and middle-income countries have greater financial inclusion index such as Thailand (2.8538FII), Brazil (1.9526FII) and Turkey (0.8582FII). In low- and middle-income countries, the gross domestic product per capita, information technology and communication, the rule of law, age dependency ratio and urbanization have a noteworthy impact on financial inclusion that accumulatively describe the 83% of the model. Whereas, in high-income countries, merely, information technology and urbanization have a substantial influence on the growth of financial revolution and financial inclusion that describes the 70% of the total. Research limitations/implications The biggest limitation is the availability of data from different countries. Originality/value The originality of this paper is its technique, which is used in this paper to calculate the financial inclusion index. Furthermore, this study contributes to 40 different countries based on income, which could help to boost financial inclusion, and ultimately, it leads them toward economic growth.

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The Level of the Financial Inclusion in the African Countries and in the World Group Regions

Cited by 7 publications

References 3 publications

Financial Inclusion’s Role in Economic Growth and Human Capital in South Asia: An Econometric Approach

Financial Inclusion’s Role in Economic Growth and Human Capital in South Asia: An Econometric Approach

The Sustainable Development of Financial Inclusion: How Can Monetary Policy and Economic Fundamental Interact with It Effectively?

Cross-country income variations and inclusive financing

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