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Measuring financial inclusion

Author

Listed:
  • Mandira Sarma

    (Jawaharlal Nehru University)

Abstract

Using a distance-based approach, this paper proposes an index of financial inclusion (IFI) – a measure of inclusiveness of a financial system that incorporates information on various dimensions of financial inclusion in a single number lying between 0 and 1. The proposed index is easy to compute and is comparable across economies and over time. It is unit-free, monotonous and homogeneous.

Suggested Citation

  • Mandira Sarma, 2015. "Measuring financial inclusion," Economics Bulletin, AccessEcon, vol. 35(1), pages 604-611.
    • Handle: RePEc:ebl:ecbull:eb-14-00854
    as

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    File URL: http://www.accessecon.com/Pubs/EB/2015/Volume35/EB-15-V35-I1-P64.pdf
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    References listed on IDEAS

    as
    1. Mandira Sarma, 2008. "Index of Financial Inclusion," Finance Working Papers 22259, East Asian Bureau of Economic Research.
    2. Honohan, Patrick, 2008. "Cross-country variation in household access to financial services," Journal of Banking & Finance, Elsevier, vol. 32(11), pages 2493-2500, November.
    3. Mandira Sarma, 2008. "Index of Financial Inclusion," Working Papers id:1575, eSocialSciences.
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    JEL classification:

    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General
    • G0 - Financial Economics - - General

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