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Formal Financial Inclusion in Cambodia: What are the Key Barriers and Determinants?


  • SAM, Vichet


This article investigates the barriers to formal financial inclusion in Cambodia, focusing on saving and credit strands. We propose the multinomial logit model, allowing to distinguish the outcome variable into three categories: Formal inclusion, Informal inclusion and Financial exclusion. We apply this model to the FinScope survey data conducted in late 2015, which represents the adult population in Cambodia. Results suggest that the trust to financial institutions, the financial literacy, the distance to banks or MFI, the lack of documentation and the service costs are the main obstacles, but these barriers affect the probability of using formal financial services differently according to the types of financial services (saving or credit). Gender, marital status, education, income, access to media and information, the use of mobile phone with the access to the Internet and the household size are also found to be the key determinants.

Suggested Citation

  • SAM, Vichet, 2019. "Formal Financial Inclusion in Cambodia: What are the Key Barriers and Determinants?," MPRA Paper 94000, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:94000

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    References listed on IDEAS

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    1. SAM, Vichet, 2019. "Access to Formal Credit and Gender Income Gap: The Case of Farmers in Cambodia," MPRA Paper 97052, University Library of Munich, Germany.

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    More about this item


    Determinants and Barriers to financial inclusion; Developing country; Multinomial logit model.;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

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