Artikel
Does financial inclusion reduce poverty and income inequality in developing countries? A panel data analysis
Financial inclusion is a key element of social inclusion, particularly useful in combat-ing poverty and income inequality by opening blocked advancement opportunities for disadvantaged segments of the population. This study intends to investigate the impact of financial inclusion on reducing poverty and income inequality, and the determinants and conditional effects thereof in 116 developing countries. The analysis is carried out using an unbalanced annual panel data for the period of 2004-2016. For this purpose, we construct a novel index of financial inclusion using a broad set of financial sector outreach indicators, finding that per capita income, ratio of internet users, age dependency ratio, inflation, and income inequality significantly influence the level of financial inclusion in developing countries. Furthermore, the results provide robust evidence that financial inclusion significantly reduces poverty rates and income inequality in developing countries. The findings are in favor of further promoting access to and usage of formal financial services by marginalized segments of the popu-lation in order to maximize society's overall welfare.
- Language
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Englisch
- Bibliographic citation
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Journal: Journal of Economic Structures ; ISSN: 2193-2409 ; Volume: 9 ; Year: 2020 ; Issue: 37 ; Pages: 1-25 ; Heidelberg: Springer
- Classification
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Wirtschaft
Banks; Depository Institutions; Micro Finance Institutions; Mortgages
Measurement and Analysis of Poverty
Macroeconomic Analyses of Economic Development
Economic Development: Human Resources; Human Development; Income Distribution; Migration
Economic Development: Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
Economywide Country Studies: Asia including Middle East
Economywide Country Studies: Latin America; Caribbean
Economywide Country Studies: Africa
- Subject
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Financial inclusion
Poverty
Income inequality
Developing countries
- Event
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Geistige Schöpfung
- (who)
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Omar, Md Abdullah
Inaba, Kazuo
- Event
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Veröffentlichung
- (who)
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Springer
- (where)
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Heidelberg
- (when)
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2020
- DOI
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doi:10.1186/s40008-020-00214-4
- Handle
- Last update
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10.03.2025, 11:42 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Artikel
Associated
- Omar, Md Abdullah
- Inaba, Kazuo
- Springer
Time of origin
- 2020
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