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Green recovery through financial inclusion of mobile payment: A study of low- and middle-income Asian countries

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  • Lee, Chien-Chiang
  • Chen, Pei-Fen
  • Chu, Pin-Jie

Abstract

The financial industry has been affected by the rise of informational technology and is actively developing digital finance. The use of technology has become an alternative resolution to improve global financial inclusion. This research discusses whether the development of mobile payment systems promotes financial inclusion and improves green environment in 29 low- and middle-income countries in Asia from 2014 to 2018. We utilize the outstanding bank deposit ratio and bank loan ratio as measures of financial inclusion and three measures for mobile payment. This study considers green recovery under an education indicator that shows awareness about the implementation of green recovery technologies. We find that some amount from loans is also useful when spent on green recovery in the move towards a clean environment. The empirical investigation notes a significant impact from mobile payment to financial inclusion development with the effect from mobile payment to financial inclusion more critical for lower- than higher-income countries in the sample. The empirical findings offer concrete evidence to encourage mobile payment ecosystems through the cooperation of government, financial institutions, and technology companies. A few policy implications are presented at the end of the study.

Suggested Citation

  • Lee, Chien-Chiang & Chen, Pei-Fen & Chu, Pin-Jie, 2023. "Green recovery through financial inclusion of mobile payment: A study of low- and middle-income Asian countries," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 729-747.
    • Handle: RePEc:eee:ecanpo:v:77:y:2023:i:c:p:729-747
    DOI: 10.1016/j.eap.2022.12.012
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    3. Li, Zengrong & Wu, Yanqiu & Rasoulinezhad, Ehsan & Sheng, Yishen & Bi, Chunyu, 2023. "Green economic recovery in central Asia by utilizing natural resources," Resources Policy, Elsevier, vol. 83(C).
    4. Wan, Jianjun & Lee, Chien-Chiang, 2023. "Corporate investment and the dilemma of the monetary policy: Evidence from China," Economic Analysis and Policy, Elsevier, vol. 78(C), pages 106-121.
    5. Yang, Jinghang & Xing, Yuanyuan & Han, Yuanyuan, 2023. "Utilization of E-commerce for fossil fuels allocation and green recovery," Resources Policy, Elsevier, vol. 85(PB).
    6. Hu, Xiaofeng, 2023. "Green economic recovery in Central Asia by utilizing natural resources," Resources Policy, Elsevier, vol. 83(C).
    7. Dinçer, Hasan & Yüksel, Serhat & Hacioglu, Umit & Yilmaz, Mustafa K. & Delen, Dursun, 2023. "Development of a sustainable corporate social responsibility index for performance evaluation of the energy industry: A hybrid decision-making methodology," Resources Policy, Elsevier, vol. 85(PA).
    8. Zhao, Congyu & Jia, Rongwen & Dong, Kangyin, 2023. "Does financial inclusion achieve the dual dividends of narrowing carbon inequality within cities and between cities? Empirical evidence from China," Technological Forecasting and Social Change, Elsevier, vol. 195(C).
    9. Cheng, Hua & Taghizadeh-Hesary, Farhad, 2023. "How green finance can bridge the energy poverty gap: Policies to mitigate socioeconomic and environmental consequences," Energy Policy, Elsevier, vol. 182(C).
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    More about this item

    Keywords

    Mobile payment; Financial inclusion; Panel data; Low- and middle-income countries; Green recovery; Green investment;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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