Variation and determinants of financial inclusion and their association with human development: A cross-country analysis

Datta, Soumyendra Kishore; Singh, Krishna

doi:10.1016/j.iimb.2019.07.013

Cited by 94 publications

(76 citation statements)

References 10 publications

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“…The two-way causality between these two variables is also discussed [64]. Prior studies have found FI and human development to be positively correlated [65,66], including one study of frontier countries from 2005 to 2014, where low human development was associated with low financial inclusion [67]. Thus, our study also hypothesizes:…”

Section: Hypothesis 1a (H1a) Financial Inclusion Increases Economic Growth In South Asiamentioning

confidence: 61%

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: Hypothesis 1a (H1a) Financial Inclusion Increases Economic Growth In South Asiamentioning

confidence: 61%

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

2021

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“…As [67] has pointed out, it is necessary that "governments should vigorously pursue financial inclusion goals by implementing regulatory and supervisory policies […] by encouraging technology innovations that lower adoption costs and widen outreach, and by ensuring that systems take care of the concerns of consumers." As these authors have argued, such an intervention must be proactive and focus on issues such as the "proximity to financial services; extent of their dimension and coverage; product features and quality; promotion of usage; household financial capacity and expansion of financial literacy."…”

Section: Proposal For Sustainable Solutions To Increase the Access To Cash Index In Vulnerable Areasmentioning

confidence: 99%

“…As [67] has pointed out, it is necessary that "governments should vigorously pursue financial inclusion goals by implementing regulatory and supervisory policies [ . .…”

Section: Proposal For Sustainable Solutions To Increase the Access To Cash Index In Vulnerable Areasmentioning

confidence: 99%

Detection of Financial Inclusion Vulnerable Rural Areas through an Access to Cash Index: Solutions Based on the Pharmacy Network and a CBDC. Evidence Based on Ávila (Spain)

2020

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The ability to access quality financial services and cash has been indicated by various organizations, such as the World Bank or UN, as a fundamental aspect to guarantee regional sustainable development. However, access to cash is not always guaranteed, especially in rural regions. The present study is based in the Ávila region of Spain. A parameter called the “access to cash index” is constructed here. It is used to detect rural areas where the ability to access cash and banking services is more difficult. Based on the “access to cash index”, two sustainable solutions are proposed: The first (in the short term), based on extending access to cash, takes advantage of the existing pharmacy network. With this measure, a notable reduction of more than 55% of the average distance required to access this service is verified here. The second is based on the implementation of a central bank digital currency. Here, the results show an acceptance of 75%. However, it is known that elderly people and those without relevant education and/or low incomes would reject its widespread use. Such a circumstance would require the development of training and information policies on the safety and effectiveness of this type of currency.

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“…Some factors can determine for female-headed household to access formal financial institutions such as education, wages, political and social factors. Financial inclusion can also be determined by quality of human development (Datta & Singh, 2019). Human development consist of quality of education and health.…”

Section: Linkages Between Dynamic Financial Inclusion and Institutions In Aseanmentioning

confidence: 99%

Linkages between Dynamic Financial Inclusion and Institutions in ASEAN 8

Pandhit¹,

Cahyadin

2020

JEP

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Financial inclusion becomes a priority concern with governments in ASEAN countries such as reduce the lack of access for public to formal financial institutions. Moreover, there is an empirical gap of linkages between institutions and financial inclusion. Thus, the study aims to estimate the effect of institutions on dynamic financial inclusion. Three financial inclusion indicators are employed, namely: debit card ownership, credit card ownership, and domestic credit to GDP ratio. Institutional indicators consist of six indicators following world governance indicators. The research observations are about 88 consisting of cross-sections were eight of ASEAN countries and the time series was 2008-2018. Indeed, a dynamic panel data was employed. In general, the findings exhibit that FEM is the appropriate model under Hausman test. Specifically, debit card ownership and credit card ownership were determined by voice and accountability, and rule of law while domestic credit to GDP ratio was determined by some indicators of institutions such as voice and accountability, political stability, regulatory quality, and control of corruption. Hence, the policy implications were directed to improve the quality of institutions both country and ASEAN levels. The high quality of institutions will stimulate the acceleration and expansion of financial inclusion in ASEAN countries.

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Variation and determinants of financial inclusion and their association with human development: A cross-country analysis

Cited by 94 publications

References 10 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

Detection of Financial Inclusion Vulnerable Rural Areas through an Access to Cash Index: Solutions Based on the Pharmacy Network and a CBDC. Evidence Based on Ávila (Spain)

Linkages between Dynamic Financial Inclusion and Institutions in ASEAN 8

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