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Trust and financial inclusion: A cross-country study

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  • Xu, Xiaoyan

Abstract

This study examines the role of social trust in financial inclusion around the world, using financial inclusion measures from Global Findex database and measure of trust from the World Values Survey. After controlling for individual characteristics, and country level differences in institutions and financial markets, social trust remains a significant and positive determinant for various aspects of financial inclusion. Trust is further found to supplement weak formal institutions and low educational levels. The role of limited trust is also examined in the study.

Suggested Citation

  • Xu, Xiaoyan, 2020. "Trust and financial inclusion: A cross-country study," Finance Research Letters, Elsevier, vol. 35(C).
    • Handle: RePEc:eee:finlet:v:35:y:2020:i:c:s1544612319303915
    DOI: 10.1016/j.frl.2019.101310
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    13. Munacinga Simatele & Loyiso Maciko, 2022. "Financial Inclusion in Rural South Africa: A Qualitative Approach," JRFM, MDPI, vol. 15(9), pages 1-22, August.
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    19. Shreya Biswas, 2021. "Effect of mobile financial services on financial behavior in developing economies-Evidence from India," Papers 2109.07077, arXiv.org.
    20. Idrees Liaqat & Yongqiang Gao & Faheem Ur Rehman & Zoltán Lakner & Judit Oláh, 2022. "National Culture and Financial Inclusion: Evidence from Belt and Road Economies," Sustainability, MDPI, vol. 14(6), pages 1-21, March.
    21. Cristina Zeldea, 2021. "Financial Inclusion Disparities in the European Union," Global Economic Observer, "Nicolae Titulescu" University of Bucharest, Faculty of Economic Sciences;Institute for World Economy of the Romanian Academy, vol. 9(1), pages 82-90, June.
    22. Cita Puspita Sari & Eny Sulistyaningrum, 2023. "Digitalization and Access to Household Credit: Pre and Post COVID-19 Pandemic," Gadjah Mada Economics Working Paper Series 202303002, Department of Economics, Faculty of Economics and Business, Universitas Gadjah Mada.
    23. Márton Gosztonyi & Dániel Havran, 2022. "Highways to Hell? Paths Towards the Formal Financial Exclusion: Empirical Lessons of the Households from Northern Hungary," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(3), pages 1573-1606, June.
    24. Shi, Lisi & Ho, Kung-Cheng & Liu, Ming-Yu, 2023. "Does societal trust make managers more trustworthy?," International Review of Financial Analysis, Elsevier, vol. 86(C).

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