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The Determinants of Financial Inclusion in Egypt

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  • Abeer Rashdan
  • Noura Eissa

Abstract

Recently, Egypt has prioritized financial inclusion in its monetary reform agenda. The objective of this paper is to examine the determinants of financial inclusion in Egypt using the World Bank¡¯s Global Findex 2017 database to conduct a logistic regression. Empirical results prove that there is no significant relationship between gender and the level of financial inclusion in Egypt, whereas, richer, more educated and older individuals are more strongly included in the financial system. The results reveal that the main barrier to financial inclusion is actually a lack of money; which hinders opening a formal account, savings account or credit account. Through possible policy measures, the paper recommends the need for a progressive approach to robust financial literacy and awareness in order for a positive economic growth role of financial inclusion to emerge in the Egyptian economy.

Suggested Citation

  • Abeer Rashdan & Noura Eissa, 2020. "The Determinants of Financial Inclusion in Egypt," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(1), pages 123-136, January.
    • Handle: RePEc:jfr:ijfr11:v:11:y:2020:i:1:p:123-136
    DOI: 10.5430/ijfr.v11n1p123
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    References listed on IDEAS

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    1. Allen, Franklin & Demirguc-Kunt, Asli & Klapper, Leora & Martinez Peria, Maria Soledad, 2016. "The foundations of financial inclusion: Understanding ownership and use of formal accounts," Journal of Financial Intermediation, Elsevier, vol. 27(C), pages 1-30.
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    4. World Bank, 2015. "World Development Indicators 2015," World Bank Publications - Books, The World Bank Group, number 21634, December.
    5. Adele Atkinson & Flore-Anne Messy, 2013. "Promoting Financial Inclusion through Financial Education: OECD/INFE Evidence, Policies and Practice," OECD Working Papers on Finance, Insurance and Private Pensions 34, OECD Publishing.
    6. Miriam Bruhn & Inessa Love, 2014. "The Real Impact of Improved Access to Finance: Evidence from Mexico," Journal of Finance, American Finance Association, vol. 69(3), pages 1347-1376, June.
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    8. World Bank, 2014. "World Development Indicators 2014," World Bank Publications - Books, The World Bank Group, number 18237, December.
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    Cited by:

    1. Mohamed Samy ElDeeb & Yasser Tawfik Halim & Esmat Mostafa Kamel, 2021. "The pillars determining financial inclusion among SMEs in Egypt: service awareness, access and usage metrics and macroeconomic policies," Future Business Journal, Springer, vol. 7(1), pages 1-19, December.
    2. David Mhlanga, 2022. "An analysis of the influence of socioeconomic and demographic factors on financial inclusion in underdeveloped regions," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 11(6), pages 341-349, September.

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