Economics at your fingertips  

Financial aid and financial inclusion: Does risk uncertainty matter?

Chien-Chiang Lee (), Chih-Wei Wang and Shan-Ju Ho

Pacific-Basin Finance Journal, 2022, vol. 71, issue C

Abstract: This paper examines whether aid flows targeted to the financial sector can improve a recipient country's financial inclusion by using data on 21 developing countries identified as both aid recipients and those practicing financial inclusion from the AidData and WBES databases. The empirical results reveal that financial aid is an important determinant for a firm's and country's financial inclusion. For countries receiving high aid flows, its impact on financial inclusion appears to be stronger and significant. The positive results also appear in countries with low-risk uncertainty (e.g. low economic risk, low unemployment rate, and low terrorism threats). Hence, our research contributes to the promotion of financial inclusion for aid-receiving developing countries and is able to track related risk factors that affect this relationship.

Keywords: Financial inclusion; Financial aid; Risk uncertainty; Developing countries (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19) Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

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:

DOI: 10.1016/j.pacfin.2021.101700

Access Statistics for this article

Pacific-Basin Finance Journal is currently edited by K. Chan and S. Ghon Rhee

More articles in Pacific-Basin Finance Journal from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

Page updated 2023-03-26
Handle: RePEc:eee:pacfin:v:71:y:2022:i:c:s0927538x21002079