IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/115770.html
   My bibliography  Save this paper

Institutional theory of financial inclusion

Author

Listed:
  • Ozili, Peterson K

Abstract

This article advocates a new addition to the theories of financial inclusion which is the institutional theory of financial inclusion. The case for a new theory arises from the role of institutions or non-market structures in influencing the level of financial inclusion. Postulating an institutional theory of financial inclusion is important due to the need to understand financial inclusion from the context of institutions and non-market structures that people have a great deal of trust in. The institutional theory of financial inclusion has the capacity to generate a wide range of testable hypotheses, and can provide the social scientist with tools that are relevant for understanding the broad spectrum of financial inclusion in society.

Suggested Citation

  • Ozili, Peterson K, 2023. "Institutional theory of financial inclusion," MPRA Paper 115770, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:115770
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/115770/1/MPRA_paper_115770.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Kazeem B. Ajide & Olorunfemi Y. Alimi & Simplice A. Asongu & Ibrahim D. Raheem, 2022. "The role of institutional infrastructures in financial inclusion‐growth relations: Evidence from SSA," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(1), pages 175-191, January.
    2. Kebede, Jeleta & Selvanathan, Saroja & Naranpanawa, Athula, 2021. "Foreign bank presence, institutional quality, and financial inclusion: Evidence from Africa," Economic Modelling, Elsevier, vol. 102(C).
    3. Onyinye I. Anthony-Orji & Anthony Orji & Jonathan E. Ogbuabor & Emmanuel O. Nwosu, 2019. "Do financial stability and institutional quality have impact on financial inclusion in developing economies? A new evidence from Nigeria," International Journal of Sustainable Economy, Inderscience Enterprises Ltd, vol. 11(1), pages 18-40.
    4. Subika Farazi, 2014. "Informal Firms and Financial Inclusion: Status and Determinants," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 5(03), pages 1-28.
    5. Farazi, Subika, 2014. "Informal firms and financial inclusion : status and determinants," Policy Research Working Paper Series 6778, The World Bank.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. 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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nam Hoang Vu & Tuan Anh Bui & Tram Bao Hoang & Hanh My Pham, 2022. "Information technology adoption and integration into global value chains: Evidence from small‐ and medium‐sized enterprises in Vietnam," Journal of International Development, John Wiley & Sons, Ltd., vol. 34(2), pages 259-286, March.
    2. Floridi, A. & Wagner, N. & Cameron, J., 2016. "A study of Egyptian and Palestine trans-formal firms – A neglected category operating in the borderland between formality and informality," ISS Working Papers - General Series 619, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
    3. Epstein, Brendan & Finkelstein Shapiro, Alan, 2017. "Employment and firm heterogeneity, capital allocation, and countercyclical labor market policies," Journal of Development Economics, Elsevier, vol. 127(C), pages 25-41.
    4. Agyekum, Francis K. & Reddy, Krishna & Wallace, Damien & Wellalage, Nirosha H., 2022. "Does technological inclusion promote financial inclusion among SMEs? Evidence from South-East Asian (SEA) countries," Global Finance Journal, Elsevier, vol. 53(C).
    5. Prasenjit Bujar Baruah & M. P. Bezbaruah, 2020. "Financial Access and Business Performance of Urban Unorganised Sector Enterprises: A Study of Assam in Northeast India," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 29(1), pages 119-147, March.
    6. Finkelstein Shapiro, Alan & Mandelman, Federico S., 2016. "Remittances, entrepreneurship, and employment dynamics over the business cycle," Journal of International Economics, Elsevier, vol. 103(C), pages 184-199.
    7. Jahel Queralt, 2019. "Protecting the entrepreneurial poor: A human rights approach," Politics, Philosophy & Economics, , vol. 18(4), pages 336-357, November.
    8. Capasso,Salvatore & Ohnsorge,Franziska Lieselotte & Shu Yu, 2022. "From Financial Development to Informality : A Causal Link," Policy Research Working Paper Series 10192, The World Bank.
    9. Trinh, Q. Long & Morgan, Peter J. & Sonobe, Tetsushi, 2020. "Investment behavior of MSMEs during the downturn periods: Empirical evidence from Vietnam," Emerging Markets Review, Elsevier, vol. 45(C).
    10. Tshepiso Gaetsewe, 2020. "Characteristics of Firms in Botswana's Informal Economy," Working Papers 74, Botswana Institute for Development Policy Analysis.
    11. Le Thanh Ha & Dao Hanh Le & Nguyen Ngoc Mai, 2021. "Bribes, market power and access to credit: evidence from cross-country firm-level data," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 68(4), pages 527-550, December.
    12. Kumar, Alok, 2023. "Financial market imperfections, informality and government spending multipliers," Journal of Development Economics, Elsevier, vol. 163(C).
    13. Kanayo K. Ogujiuba & Maria Eggink & Ebenezer Olamide, 2023. "Impact of Elements of Finance and Business Support on the SME Business Ecosystem in South Africa: An Econometric Analysis," Sustainability, MDPI, vol. 15(11), pages 1-19, May.
    14. Rojas Cama, Freddy & Emara, Noha & Trabelsi, Mohamed, 2024. "Financial inclusion and the informal sector," Research in International Business and Finance, Elsevier, vol. 70(PB).
    15. Juan Carlos Urueña-Mejía & Luis H. Gutierrez & Paul Rodríguez-Lesmes, 2023. "Financial inclusion and business practices of microbusiness in Colombia," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 13(2), pages 465-494, June.
    16. Andrea Floridi & Binyam Afewerk Demena & Natascha Wagner, 2022. "A Game Worth The Candle? Meta-Analysis Of The Effects Of Formalization On Firm Performance," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 27(04), pages 1-27, December.
    17. Sarah Lynne Salvador Daway-Ducanes & Maria Socorro Gochoco-Bautista, 2019. "Manufacturing and Services Growth in Developing Economies: ‘Too Little’ Finance?," Progress in Development Studies, , vol. 19(1), pages 55-82, January.
    18. Ongo Nkoa, Bruno Emmanuel & Song, Jacques Simon, 2020. "Does institutional quality affect financial inclusion in Africa? A panel data analysis," Economic Systems, Elsevier, vol. 44(4).
    19. Samson Adewumi, 2024. "Level of Financial Literacy Skills and Managerial Decision Implication among University Managers," International Review of Management and Marketing, Econjournals, vol. 14(4), pages 1-11, July.
    20. Ekene ThankGod Emeka & Simplice A. Asongu & Yolande E. Ngoungou, 2024. "Gender economic inclusion, governance institutions and economic complexity in Africa," Working Papers of the African Governance and Development Institute. 24/012, African Governance and Development Institute..

    More about this item

    Keywords

    financial inclusion; institutions; institutional theory; access to finance; non-market structure; culture; unbanked adults; financial exclusion.;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • P37 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Legal

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:115770. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.