Financial Inclusion: New Measurement and Cross-Country Impact Assessment
Cyn-Young Park; Rogelio V. Mercado, Jr. | March 2018
Abstract
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.
Citation
Cyn-Young Park; Rogelio V. Mercado, Jr.. 2018. Financial Inclusion: New Measurement and Cross-Country Impact Assessment. © Asian Development Bank. http://hdl.handle.net/11540/8102. License: CC BY 3.0 IGO.ISSN
2313-6537 (print)
2313-6545 (electronic)
Keywords
Poverty Analysis
Participatory Poverty Assessment
Poverty Reduction Strategy
Extreme Poverty
Economic development
Growth And Poverty
Macroeconomic
Macroeconomic Analysis
Macroeconomic Framework
Macroeconomic Models
Macroeconomic Performance
Macroeconomic Planning
Macroeconomic Policies
Macroeconomic Reform
Macroeconomic Stabilization
Income Distribution
Demographic Indicators
Social Justice
Price stabilization
Food prices
Price policy
Development Indicators
Environmental Indicators
Economic Indicators
Educational Indicators
Demographic Indicators
Health Indicators
Disadvantaged Groups
Low Income Groups
Socially Disadvantaged Children
Social change
Social accounting
Inequality of income
Economic growth
Quality of Life
Open price system
Price fixing
Price regulation
Consumer price indexes
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