The Financial Inclusion Development and Its Impacts on Disposable Income

Salman Mahmood, Wen Shuhui, Shoaib Aslam and Tanveer Ahmed

SAGE Open, 2022, vol. 12, issue 2, 21582440221093369

Abstract: The study examines the dimension of financial inclusion from the beneficiaries’ perspective (on the demand side). In addition, the present study seeks to determine the relationship between financial inclusion and the disposable income of Pakistani households. The results revealed four significant dimensions to predict financial inclusion (access, availability, usage, and cost). Furthermore, the results also revealed that financial inclusion significantly and directly and indirectly impacts disposable income. Thus, this research emphasizes that inclusion in the formal financial system can enhance the disposable income of low-income urban households and assist them in combating poverty. Further, this investigation is among the earliest to provide a demand-side perspective to measure the ï¬ nancial inclusion dimensions of the “most financially excluded†group (low-income urban households in Pakistan). Besides, this study advances the literature on financial inclusion and disposable income. It attempts to adequately bridge the gap in the literature by examining the relationship between financial inclusion and disposable income among low-income urban households by employing the structural equation modeling approach.

Keywords: disposable income; poverty alleviation; economic growth; income equality; financial inclusion; demand-side perspective (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:sae:sagope:v:12:y:2022:i:2:p:21582440221093369

DOI: 10.1177/21582440221093369

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