On the evolution over time of Financial Inclusion: A new multivariate index for Mexican municipalities

María del Carmen Dircio Palacios Macedo (mariadelcarmen.dircio@uji.es), Paula Cruz-García (paula.cruz@uv.es), Fausto Hernandez-Trillo and Emili Tortosa-Ausina
Additional contact information
María del Carmen Dircio Palacios Macedo: Department of Economics, Universitat Jaume I, Castellón, Spain
Paula Cruz-García: Department of Economic Analysis, Universitat de Valencia, Spain

No 2024/06, Working Papers from Economics Department, Universitat Jaume I, Castellón (Spain)

Abstract: Access to financial services is unequal around the world. In many countries, les than half of the population has an account at a financial institution, and this lack of access to finance is often a critical reason behind income inequality and uneven growth. This is the case of Mexico, where financial exclusion affects large shares of the population mainly in rural and poorer localities. This is an ongoing concern for policymakers, since it undermines socioeconomic opportunities for families and businesses alike, hampering economic growth and development. However, assessing the relevance of this issue requires a careful measurement of financial inclusion which, to date, has only been achieved to a limited extent. We contribute to the literature in this context by proposing a multivariate index of financial inclusion for Mexico, at the municipal level, for the period 2013–2021. This index covers several dimensions, including access, and usage. The results corroborate that a large proportion of the population is still unbanked, although it is unevenly distributed across the country.

Keywords: composite indicator; financial inclusion; Mexican municipalities; Mexico (search for similar items in EconPapers)
JEL-codes: G21 G23 G30 O16 R51 (search for similar items in EconPapers)
Pages: 45 pages
Date: 2024
New Economics Papers: this item is included in nep-ban, nep-dev, nep-fdg, nep-fle, nep-his, nep-inv and nep-pay
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.doctreballeco.uji.es/wpficheros/Dircio_et_al_06_2024.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:jau:wpaper:2024/06

Access Statistics for this paper

More papers in Working Papers from Economics Department, Universitat Jaume I, Castellón (Spain) Contact information at EDIRC.
Bibliographic data for series maintained by María Aurora Garcia Gallego (mgarcia@eco.uji.es).