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Financial Inclusion in Ethiopia: Using LSMS (Ethiopia Socioeconomic Survey) Data

Author

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  • Desalegn, Gashaw
  • Yemataw, Gebe

Abstract

Only less than a quarter of Ethiopian adults have a formal account. In this study, the status, level and determinants of financial inclusion and barriers to financial inclusion in Ethiopia are analysed. We found that better education, financial literacy, gender, age, living in an urban area, living in the capital city, and preference for formal financial services are associated with a greater level of financial inclusion in Ethiopia. Furthermore, we found that involuntary and voluntary exclusion are higher in Ethiopia. We recommend policies that could narrow down gender, religious, and urban-rural gaps and foster financial inclusion in Ethiopia.

Suggested Citation

  • Desalegn, Gashaw & Yemataw, Gebe, 2017. "Financial Inclusion in Ethiopia: Using LSMS (Ethiopia Socioeconomic Survey) Data," Ethiopian Journal of Economics, Ethiopian Economics Association, vol. 26(01), April.
    • Handle: RePEc:ags:eeaeje:343210
    DOI: 10.22004/ag.econ.343210
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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.
    2. Thorsten Beck & Asli Demirgüç-Kunt & Ross Levine, 2007. "Finance, inequality and the poor," Journal of Economic Growth, Springer, vol. 12(1), pages 27-49, March.
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    Cited by:

    1. Tekeste Berhanu Lakew & Hossein Azadi, 2020. "Financial Inclusion in Ethiopia: Is It on the Right Track?," IJFS, MDPI, vol. 8(2), pages 1-13, May.
    2. Dagmawe Menelek Asfaw & Atinkugn Assefa Belete & Abibual Getachew Nigatu & Getnet Mamo Habtie, 2023. "Status and determinants of saving behavior and intensity in pastoral and agro-pastoral communities of Afar regional state, Ethiopia," PLOS ONE, Public Library of Science, vol. 18(2), pages 1-15, February.
    3. Mebratu Negera & Tekie Alemu & Fitsum Hagos & Amare Haileslassie, 2025. "Does financial inclusion enhance farmers' resilience to climate change? Evidence from rural Ethiopia," Sustainable Development, John Wiley & Sons, Ltd., vol. 33(2), pages 3008-3022, April.

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