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Measuring financial inclusion: An Axiomatic approach

  • Satya R. Chakravarty

    ()

    (Indian Statistical Institute, Kolkata)

  • Rupayan Pal

    ()

    (Indira Gandhi Institute of Development Research)

This paper clearly demonstrates that the axiomatic measurement approach developed in the human development literature can be usefully applied to the measurement of financial inclusion. A conceptual framework for aggregating data on financial services in different dimensions is developed. The suggested index of financial inclusion allows calculation of percentage contributions of different dimensions to the overall achievement. This in turn enables us to identify the dimensions of inclusion that are more/less susceptible to overall inclusion and hence to isolate the dimensions that deserve attention from a policy perspective. The paper also illustrates the index using cross-country and sub-national level data.

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Paper provided by Indira Gandhi Institute of Development Research, Mumbai, India in its series Indira Gandhi Institute of Development Research, Mumbai Working Papers with number 2010-03.

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Length: 38 pages
Date of creation: Mar 2010
Date of revision:
Handle: RePEc:ind:igiwpp:2010-03
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