EconPapers    
Economics at your fingertips  
 

Determinants of financial inclusions: comparing high, middle, and low-income countries

Lan Chu ()
Additional contact information
Lan Chu: Banking Academy of Vietnam

Economics Bulletin, 2019, vol. 39, issue 2, 1449-1457

Abstract: The objective of this paper is to examine the determinants of financial inclusion in high, middle, and low-income countries. We use the World Bank's 2017 Global Financial Inclusion database and apply probit estimation for different measures of financial inclusion, including account, payment, saving, and borrowing. For the full sample, we find that being a man, more educated, richer, employed, and older to a certain age increases the likelihood of access to formal financial services. For the three country sub-groups, the impacts of education and income on the likelihood of saving and borrowing formally are highest in high-income countries and lowest in low-income countries but the ranking is reverted for formal account and payment. However, the magnitude of impacts increases with the level of education and income in each of country sub-groups for all measures formal financial inclusion. Our finding supports the view that substitution between formal and informal credit is based on income level in high-income and middle-income countries only.

Keywords: Financial inclusion; financial institution (search for similar items in EconPapers)
JEL-codes: G2 O1 (search for similar items in EconPapers)
Date: 2019-06-15
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.accessecon.com/Pubs/EB/2019/Volume39/EB-19-V39-I2-P137.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ebl:ecbull:eb-19-00254

Access Statistics for this article

More articles in Economics Bulletin from AccessEcon
Bibliographic data for series maintained by John P. Conley ().

 
Page updated 2019-06-29
Handle: RePEc:ebl:ecbull:eb-19-00254