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Construction of a Regional Financial Inclusion Index in Turkey

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  • Recep YORULMAZ

Abstract

This paper examines a multidimensional measurement of financial inclusion to gauge the extent of financial system across time in Turkey. A multidimensional index of financial inclusion has been developed to allow for comparison among regions and provinces of Turkey in terms of financial inclusion for policymakers. Financial access indicators are used to construct and index lying between 0 and 1. The normalized indicators are than extracted by the Euclidean distance formula. The empirical results show that financial inclusion values are parallel to the income levels of the regions and provinces. The high income level regions and provinces tend to have higher levels of financial inclusion and vice versa. These results should be primarily used by policymakers for future reference of the new legislations of financial inclusion.

Suggested Citation

  • Recep YORULMAZ, 2013. "Construction of a Regional Financial Inclusion Index in Turkey," Journal of BRSA Banking and Financial Markets, Banking Regulation and Supervision Agency, vol. 7(1), pages 79-101.
    • Handle: RePEc:bdd:journl:v:7:y:2013:i:1:p:79-101
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    Cited by:

    1. George Sullivan & Luke Burns, 2022. "Cashing Out: Assessing the risk of localised financial exclusion as the UK moves towards a cashless society," Papers 2202.05674, arXiv.org.
    2. Neha Arora & Naresh Kumar, 2021. "Does Financial Inclusion Promote Human Development? Evidence from India," Jindal Journal of Business Research, , vol. 10(2), pages 163-184, December.
    3. Ma, Qiang & Li, Sa & Aslam, Misbah & Ali, Naveed & Alamri, Ahmad Mohammed, 2023. "Extraction of natural resources and sustainable renewable energy: COP26 target in the context of financial inclusion," Resources Policy, Elsevier, vol. 82(C).
    4. Singh, Bhanu Pratap & Kumari, Annu & Sharma, Tanya & Malhotra, Abhishek, 2020. "Does PMJDY Scheme Augmented Financial Inclusion in India? Evidence from Indian States," MPRA Paper 104442, University Library of Munich, Germany.
    5. Li, Jiaman & Dong, Xiucheng & Dong, Kangyin, 2022. "How much does financial inclusion contribute to renewable energy growth? Ways to realize green finance in China," Renewable Energy, Elsevier, vol. 198(C), pages 760-771.
    6. Oguzhan Cepni & Yavuz Selim Hacihasanoglu & Muhammed Hasan Yilmaz, 2020. "Credit decomposition and economic activity in Turkey: A wavelet-based approach," Central Bank Review, Research and Monetary Policy Department, Central Bank of the Republic of Turkey, vol. 20(3), pages 109-131.
    7. Singh, Bhanu Pratap & Kumari, Annu & Sharma, Tanya & Malhotra, Abhishek, 2020. "Does PMJDY Scheme Augment Financial Inclusion in India? Evidence from Indian States," MPRA Paper 104733, University Library of Munich, Germany.
    8. Tram, Thi Xuan Huong & Lai, Tien Dinh & Nguyen, Thi Truc Huong, 2023. "Constructing a composite financial inclusion index for developing economies," The Quarterly Review of Economics and Finance, Elsevier, vol. 87(C), pages 257-265.
    9. Sheng Xu & Michael Asiedu & Nana Adwoa Anokye Effah, 2023. "Inclusive Finance, Gender Inequality, and Sustainable Economic Growth in Africa," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(4), pages 4866-4902, December.
    10. El-Bourainy Mehry & Salah Ashraf & ElSherif Marwa, 2021. "The Impact of Financial Inclusion on Unemployment Rate in Developing Countries," International Journal of Economics and Financial Issues, Econjournals, vol. 11(1), pages 79-93.
    11. Kundu, Amit & DAS, SANGITA, 2021. "Accessibility of Institutional Credit among the Agricultural Labour Households and its Impact on their Livelihood," MPRA Paper 112791, University Library of Munich, Germany, revised 03 Mar 2022.
    12. Barine Michael Nwidobie, 2019. "Financial Inclusion Index in Nigeria: An Exploratory Analysis," International Journal of Publication and Social Studies, Asian Economic and Social Society, vol. 4(1), pages 26-36, March.
    13. Kalandi Charan Pradhan & Ritik Sharma, 2022. "Assessing the spatiotemporal financial inclusion and its determinants: a sub-national analysis of India," Asia-Pacific Journal of Regional Science, Springer, vol. 6(2), pages 635-681, June.
    14. Bhanu Pratap Singh & Annu Kumari & Tanya Sharma & Abhishek Malhotra, 2021. "Financial inclusion, Pradhan Mantri Jan Dhan Yojna Scheme and economic growth: Evidence from Indian States," Economic Notes, Banca Monte dei Paschi di Siena SpA, vol. 50(3), November.

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    More about this item

    Keywords

    Financial Inclusion; Financial and Economic Development; Turkey;
    All these keywords.

    JEL classification:

    • G2 - Financial Economics - - Financial Institutions and Services
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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