Inclusive Finance and Income Inequality: An Evidence from Saudi Arabia

Fatma Mabrouk () and Noreha Halid
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Fatma Mabrouk: Princess Nourah Bint Abdulrahman University
Noreha Halid: Princess Nourah Bint Abdulrahman University

A chapter in Financial Inclusion in Emerging Markets, 2021, pp 311-327 from Springer

Abstract: Abstract This chapter explores the association between income inequality and financial inclusion in Saudi Arabia. Using The Global Financial Inclusion Database (Global F-index) published by the World Bank and Probit models, this study tries to explain the impact of financial inclusion on Saudi income. Indicators of financial inclusion measure how people borrow, save, make secure payments and deal with risks. They are collected for all respondents by key demographic profiles as gender, age, education and employment status, and covering more than 1000 individuals for the year 2017. The study looks at how financial inclusion can play the role of catalyst for reducing inequality. Results show that access and usage pillars are significantly reducing the probability to be in the lowest and second income quintile. However, the availability-quality pillar is not significant. The overall conclusion is that financial inclusion can be a veritable channel to alleviate poverty and enhance equality income in the Saudi economy.

Keywords: Inequality; Micro Economic Data; Financial inclusion; Saudi Arabia (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-981-16-2652-4_16

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DOI: 10.1007/978-981-16-2652-4_16

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