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Financial inclusion and multidimensional poverty in Ecuador: A spatial approach

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  • Álvarez-Gamboa, Javier
  • Cabrera-Barona, Pablo
  • Jácome-Estrella, Hugo

Abstract

In recent years, studies on poverty and inequality have focused on financial inclusion as a mechanism to improve people's living conditions. This paper studies the impact of financial inclusion on multidimensional poverty in the provinces of Ecuador during the period 2015–2018. A synthetic index of financial inclusion was developed, using the principal components analysis methodology in two stages. Additionally, using SARAR-type spatial panel data models, space is added as an explanatory factor to identify the existence of spatial effects among the Ecuadoŕs provinces, such as dependency and heterogeneity. The results indicate that financial inclusion has a positive and significant effect on poverty alleviation. This study also shows the spatial heterogeneity of multidimensional poverty and financial inclusion, and can support provincial-level planning to tackle territorial inequalities.

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  • Álvarez-Gamboa, Javier & Cabrera-Barona, Pablo & Jácome-Estrella, Hugo, 2021. "Financial inclusion and multidimensional poverty in Ecuador: A spatial approach," World Development Perspectives, Elsevier, vol. 22(C).
    • Handle: RePEc:eee:wodepe:v:22:y:2021:i:c:s2452292921000254
    DOI: 10.1016/j.wdp.2021.100311
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    3. Djahini-Afawoubo, Dossè Mawussi & Couchoro, Mawuli Kodjovi & Atchi, Fambari Kokou, 2023. "Does mobile money contribute to reducing multidimensional poverty?," Technological Forecasting and Social Change, Elsevier, vol. 187(C).
    4. Carlos Mendez & Felipe Santos-Marquez, 2022. "Economic and Social Disparities across Subnational Regions of South America: A Spatial Convergence Approach," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 64(4), pages 582-605, December.
    5. Zhang, Jiaping & Zhang, Huirong & Gong, Xiaomei, 2022. "Mobile payment and rural household consumption: Evidence from China," Telecommunications Policy, Elsevier, vol. 46(3).
    6. Lee, Chien-Chiang & Lou, Runchi & Wang, Fuhao, 2023. "Digital financial inclusion and poverty alleviation: Evidence from the sustainable development of China," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 418-434.
    7. Jesús Antonio López Cabrera & Francisco Gabriel Villarreal & Diego Cardoso López, 2023. "Una propuesta de medición de la inclusión financiera en México," Remef - Revista Mexicana de Economía y Finanzas Nueva Época REMEF (The Mexican Journal of Economics and Finance), Instituto Mexicano de Ejecutivos de Finanzas, IMEF, vol. 18(3), pages 1-41, Julio - S.

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