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Financial inclusion and development in the least developed countries in Asia and Africa

Author

Listed:
  • Antonella Francesca Cicchiello

    (Catholic University of the Sacred Heart)

  • Amirreza Kazemikhasragh

    (University Program of Studies on Asia and Africa (PUEAA), National Autonomous University of Mexico (UNAM), University City)

  • Stefano Monferrá

    (Catholic University of the Sacred Heart)

  • Alicia Girón

    (University Program of Studies on Asia and Africa (PUEAA), National Autonomous University of Mexico (UNAM), University City)

Abstract

The purpose of this paper is to investigate the relationship between the financial inclusion index and development variables in the least developed countries in Asia and Africa by using annual data of 42 countries for the period 2000–2019. The pooled panel regression and panel data analysis technique are used to explore this relationship. The empirical finding indicates that economic growth leads to financial inclusion. Unemployment and literacy rates are among the factors contributing to financial inclusion, and it is observed that women are more vulnerable than men are to lack financial inclusion. In less developed countries, the economy relies heavily on agriculture, and people are less financially inclusive when they live in rural areas of these countries. Also, pay inequality reduces financial inclusion rates and has a negative impact on development. The low financial inclusion rate reduces the levels of development in these countries. The results of this study can lead to the development and empowerment of vulnerable groups in the studied countries. In order to improve the conditions for development, policymakers should consider policies that enhance literacy, eliminate gender inequality and increase pay equality.

Suggested Citation

  • 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.
    • Handle: RePEc:spr:joiaen:v:10:y:2021:i:1:d:10.1186_s13731-021-00190-4
    DOI: 10.1186/s13731-021-00190-4
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    4. ETUDAIYE-MUHTAR Oyebola Fatima, 2024. "Financial Inclusion And Income Inequality In Nigeria," Management of Sustainable Development, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 16(1), pages 75-87, June.
    5. Damane, Moeti & Ho, Sin-Yu, 2024. "Effects of financial inclusion on financial stability: evidence from ssa countries," MPRA Paper 120238, University Library of Munich, Germany.
    6. Obobisa, Emma Serwaa, 2022. "Achieving 1.5 °C and net-zero emissions target: The role of renewable energy and financial development," Renewable Energy, Elsevier, vol. 188(C), pages 967-985.
    7. Amirreza Kazemikhasragh & Marianna Vanessa Buoni Pineda, 2022. "Financial inclusion and education: An empirical study of financial inclusion in the face of the pandemic emergency due to Covid‐19 in Latin America and the Caribbean," Review of Development Economics, Wiley Blackwell, vol. 26(3), pages 1785-1797, August.
    8. Emmanuel, Bukuwa Nambale, 2022. "The determinants of participation in savings groups and the impact on input investment among smallholder farmers in Sironko district, Uganda," Research Theses 334746, Collaborative Masters Program in Agricultural and Applied Economics.
    9. Ozili, Peterson K, 2024. "Comparative analysis of financial inclusion in Nigeria, sub-Saharan Africa and the World," MPRA Paper 121527, University Library of Munich, Germany.
    10. Ozili, Peterson K, 2022. "Financial inclusion and sustainable development: an empirical association," MPRA Paper 115772, University Library of Munich, Germany.
    11. Bu, Fan & wu, Hong & Mahmoud, Haitham A. & Alzoubi, Haitham M. & Ramazanovna, Nargiza Kuzieva & Gao, Yirui, 2023. "Do financial inclusion, natural resources and urbanization affect the sustainable environment in emerging economies," Resources Policy, Elsevier, vol. 87(PA).
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    More about this item

    Keywords

    Financial inclusion; Gender; Economic development; Financing policy;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • O23 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Fiscal and Monetary Policy in Development
    • O50 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - General

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