Financial Inclusion: New Measurement and Cross-Country Impact Assessment

By Cyn‐Young Park, Rogelio V. Mercado. 2018

134 citations recorded by the source corpus.

This paper introduces a new index of financial inclusion for 151 economies using principal component analysis to compute weights for aggregating nine indicators of access, availability, and usage. It then assesses the impact of financial inclusion on poverty and income inequality. The results provide evidence that high- and middle-high-income economies with high financial inclusion have significantly lower poverty, while no such relation exists for middle-low and low-income economies. The nonlinearities in the cross-country determinants and impacts of financial inclusion on poverty and income inequality across income groups are important to choosing the appropriate policies for achieving inclusive growth in different development stages.

Subfields: Accounting, Economics and Econometrics, Information Systems

View Paper: https://www.semanticscholar.org/paper/96b29b5c117a91a8119c97aa8baa92496ca6970f

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In Accounting

1. M. Omar
2. T. Nguyen
3. K. Inaba

In Economics and Econometrics

1. M. Omar
2. T. Nguyen
3. K. Inaba

In Information Systems

1. M. Omar
2. T. Nguyen
3. K. Inaba

Citations in the corpus

• Does financial inclusion reduce poverty and income inequality in developing countries? A panel data analysis (2020, methodology): “(2014), RojasSuarez and Amado (2014), Swamy (2014), Alter and Yontcheva (2015), García-Herrer and Turégano (2015), Park and Mercado (2015, 2018), Evans and Adeoye (2016), Schmied and Marr (2016), Aslan et al.”
• Measuring financial inclusion: a composite FI index for the developing countries (2020, methodology): “IFIi ¼ β0 þ β1 FIIi þ ti (6) where IFIi : index of FI from Park and Mercado (2018); FIIi : our FI index.”