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Determinants of Financial Inclusion: Comparative Study of Asian Countries

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  • Thanh Tam Le
  • Nguyen Dieu Linh Dang
  • Thi Dieu Thu Nguyen
  • Thanh Son Vu
  • Manh Dung Tran

Abstract

Using panel data of twenty Asian countries over a period of six years (2011-2016), this research investigated the key determinants of financial inclusion among Asian countries via the Random Effects Model (REM). Financial inclusion has been considered as enabler for seven of the seventeen sustainable development goals, which brings access to financial services to all and directly contributes to poverty reduction, capacity buildings and equality. The main findings are that: (i) the countries with stronger economic growth and higher income have a significantly higher financial inclusion index, as people have more resources/incomes and better chances to utilize financial services; (ii) the higher the literacy, the better the financial inclusion as people with higher literacy understand the pros and cons of financial services and providers, better knowledge of using financial services wisely; (iii) unemployment rates had a negative impact on the financial inclusion index; (iv) surprisingly differing from previous studies, inflation, population density, network and deposit interest rate were not statistically significantly correlated with financial inclusion.

Suggested Citation

  • Thanh Tam Le & Nguyen Dieu Linh Dang & Thi Dieu Thu Nguyen & Thanh Son Vu & Manh Dung Tran, 2019. "Determinants of Financial Inclusion: Comparative Study of Asian Countries," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 9(10), pages 1107-1123.
    • Handle: RePEc:asi:aeafrj:v:9:y:2019:i:10:p:1107-1123:id:1862
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    Citations

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    Cited by:

    1. Alicia Girón & Amirreza Kazemikhasragh & Antonella Francesca Cicchiello & Eva Panetti, 2022. "Financial Inclusion Measurement in the Least Developed Countries in Asia and Africa," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(2), pages 1198-1211, June.
    2. Sulehri, Fiaz Ahmad & Ali, Amjad, 2024. "Financial Inclusion Dynamics: A Cross-Country Examination of Bank Concentration and Policy Strategies," MPRA Paper 121284, University Library of Munich, Germany.
    3. David Damiyano & Stephen Mago, 2023. "An Analysis of the Impact of Financial Inclusion on Poverty and Development: Case of SACU Countries," International Journal of Economics and Financial Issues, Econjournals, vol. 13(6), pages 141-147, November.
    4. Shubham Chavriya & Gagan Deep Sharma & Mandeep Mahendru, 2024. "Financial inclusion as a tool for sustainable macroeconomic growth: An integrative analysis," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 95(2), pages 527-551, June.
    5. Liang, Xuefang & Qianqian, Ding & Xiaozhou, Zhu & Ullah, Midrar, 2024. "Asymmetric relationship between natural resources extraction policy and financial development exist? A conflict and comparative analysis between China and US," Resources Policy, Elsevier, vol. 90(C).
    6. Jacob Muvingi & Arshad Ahmud Iqbal Peer & Josef Jablonský & Hossein Azizi & Farhad Hosseinzadeh Lotfi, 2024. "Hierarchical fuzzy DEA model with double frontiers combined with TOPSIS technique: application on mobile money agents locations," OPSEARCH, Springer;Operational Research Society of India, vol. 61(3), pages 1154-1191, September.
    7. Antonella Francesca Cicchiello & Amirreza Kazemikhasragh & Stefano Monferrá & Alicia Girón, 2021. "Financial inclusion and development in the least developed countries in Asia and Africa," Journal of Innovation and Entrepreneurship, Springer, vol. 10(1), pages 1-13, December.

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