Index of Financial Inclusion
AbstractThe promotion of an inclusive financial system is considered a policy priority in manycountries. While the importance of financial inclusion is widely recognized, theliterature lacks a comprehensive measure that can be used to measure the extent offinancial inclusion across economies. This paper attempts to fill this gap byproposing an index of financial inclusion (IFI). The IFI is a multi-dimensional indexthat captures information on various dimensions of financial inclusion in one singledigit lying between 0 and 1, where 0 denotes complete financial exclusion and 1indicates complete financial inclusion in an economy. The proposed index is easy tocompute and is comparable across countries.
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Bibliographic InfoPaper provided by Indian Council for Research on International Economic Relations, New Delhi, India in its series Indian Council for Research on International Economic Relations, New Delhi Working Papers with number 215.
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inancial inclusion; IFI; multi-dimensional index; normalized inverse; Euclidean distance;
Find related papers by JEL classification:
- G00 - Financial Economics - - General - - - General
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
- O16 - Economic Development, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
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