SFIMAR Research Review

Open Access Open Access  Restricted Access Subscription or Fee Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription or Fee Access

A Cross-Country Evaluation of Financial Inclusion and its Linkage with Growth and Development


Affiliations
1 Finance, St Francis Institute of Management and Research, Borivali W, Mumbai - 400 103, India
2 St. Francis Institute of Management and Research, Borivali W, Mumbai - 400 103, India
     

   Subscribe/Renew Journal


The study measures the status of Financial Inclusion across the globe for the twelve-year period 2005-16. The Index of Financial Inclusion (IFI) is measured through the normalized Euclidean approach cited by Sarma (2008) taking into account the indicators of access to and usage of financial services. Principal Components Analysis technique has been employed to derive the weightage of the indicators in determining the index. The study endeavours to explore the contribution of financial inclusion towards growth and development of the countries through the statistical technique, Granger-Causality. It suggests a bi-directional relationship of the country's financial inclusion towards growth and development.

Keywords

Financial Inclusion, Granger Causality, Growth and Development, Access and Usage of Financial Services.
User
Subscription Login to verify subscription
Notifications
Font Size

  • Beck, T. A., Demirguc-Kunt, & Levine, R. (2007). Reaching out: Access to and use banking services across countries. Journal of Financial Economics, 85, 234-66.

  • Centre for Technology Innovation, Brookings. (2016). Advancing Equitable Financial Ecosystems. THE 2016 BROOKINGS FINANCIAL AND DIGITAL INCLUSION PROJECT REPORT.

  • Kim, D., Yu, J., & Hassan, M. (2018). Financial inclusion and economic growth in OIC countries. Review in International Business and Finance, 43 (C), 1-14.

  • Okoye, Adetiloye, Erin and Modebe. (2017). Financial inclusion as a strategy tor enhanced economic growth and development. Journal of Internet Banking and Commerce, 22 (S8), 1-14.

  • M. (2008, June). Index of Financial Inslusion. INDIAN COUNCIL FOR RESEARCH ON INTERNATIONAL ECONOMIC RELATIONS, Workin Paper (215), 1-20.

  • Sahay, et al. (2015). Financial Inclusion: Can It Meet Multiple Macroeconomic Goals? IMF Staff Discussion Note, SDN/15/1 7.

  • Sarma, M., & Pais, J. (2008). Financial Inclusion and Development: A Cross Country Analysis. Indian Council for Research on International Economic Relations, 1-28.

  • World Bank. (2014). Financial Inclusion. Global Financial Development Report 201 4.

  • World Bank. (2016). World Development Indicators.

  • Zins. A. & Weill, L. (2016). The Determinants of Financial Inclusion in Africa. Review of Development Finance, 6(1),46-57.


Abstract Views: 327

PDF Views: 1




  • A Cross-Country Evaluation of Financial Inclusion and its Linkage with Growth and Development

Abstract Views: 327  |  PDF Views: 1

Authors

Smita Jesudasan
Finance, St Francis Institute of Management and Research, Borivali W, Mumbai - 400 103, India
Renita D'Souza
St. Francis Institute of Management and Research, Borivali W, Mumbai - 400 103, India

Abstract


The study measures the status of Financial Inclusion across the globe for the twelve-year period 2005-16. The Index of Financial Inclusion (IFI) is measured through the normalized Euclidean approach cited by Sarma (2008) taking into account the indicators of access to and usage of financial services. Principal Components Analysis technique has been employed to derive the weightage of the indicators in determining the index. The study endeavours to explore the contribution of financial inclusion towards growth and development of the countries through the statistical technique, Granger-Causality. It suggests a bi-directional relationship of the country's financial inclusion towards growth and development.

Keywords


Financial Inclusion, Granger Causality, Growth and Development, Access and Usage of Financial Services.

References