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Purpose
This study aims to investigate the association between social inclusion and financial inclusion. Social inclusion and financial inclusion are two major development policy agendas in many countries, and the association between them has received little attention in the policy and academic literature.
Design/methodology/approach
The findings...
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Citations
... This entails scrutinizing financial issues and the interconnections between the financial sector and other domains of the economy. As a result, the body of research on this relationship has been steadily expanding and evolving (Ozili, 2020) [6], and has revealed that enhancing any aspect or indicator of the financial factor can have a constructive impact on poverty reduction in a wide range of interactive channels. The present discourse aims to examine the impact of financial inclusion on multidimensional poverty reduction in Vietnam. ...
... This entails scrutinizing financial issues and the interconnections between the financial sector and other domains of the economy. As a result, the body of research on this relationship has been steadily expanding and evolving (Ozili, 2020) [6], and has revealed that enhancing any aspect or indicator of the financial factor can have a constructive impact on poverty reduction in a wide range of interactive channels. The present discourse aims to examine the impact of financial inclusion on multidimensional poverty reduction in Vietnam. ...
Vietnam has made significant progress in reducing multidimensional poverty and increasing its economic scale over the years. This success can be attributed to the United Nations' implementation of 17 sustainable development goals (SDGs). A key solution to this challenge is financial inclusion. This study examined the impact of financial inclusion on multidimensional poverty in Vietnam from 2016 to 2020 under the moderating role of economic scale per capita. With Fixed Effect (FE) and Random Effect (RE) models and provincial data, the results show that enhancing financial inclusion can effectively alleviate multidimensional poverty in Vietnam, with access to the Internet and quality of public services being significant factors as well. Moreover, our findings reveal that economic scale per capita plays a moderating role in the relationship between financial inclusion and multidimensional poverty. Improving the economic output per capita has the potential to mitigate the impact of financial inclusion on multidimensional poverty. Therefore, it is recommended that areas with low economic scale per capita prioritize strategies to promote financial inclusion, while local governments in other regions should concentrate on implementing effective poverty reduction measures rather than emphasizing financial inclusion.
... During this period, economically weaker borrowers can obtain fi-246 nancing from LTs, which remain more open to risk. As a consequence, the crisis situation on the financial market does not have the same strong effects on consumers -who would otherwise be excluded from the financial market -with all the consequences of this fact such as financial and social exclusion (Ozili, 2020). This approach is consistent with the approach proposed by Deeg (2005) based on assumption that the core idea of complementarity is that the coexistence (within a given system) of two or more institutions mutually enhances the performance contribution of each individual institution -in essence, that the whole is more than the sum of its parts. ...
Research background: People who take non-banking loans are primarily perceived as exclud-ed from accessing bank services. The growth of e-commerce and the increasing digitalisation of customer interactions with banks was particularly accelerated by the COVID-19 pandemic (the first ‘black swan’). These processes have also influenced the rapid growth of the LendTech (LT) sector within FinTech with its digital loans and buy-now-pay-later (BNPL) services. The war in Ukraine (the second ‘black swan’) has led to an energy crisis, increased inflation, interest rates and credit costs, and reduced credit accessibility. In this context, the following research questions are addressed: Are the LT and banking sectors complementary or substitutive in the area of consumer financing? Does complementarity apply to all customer segments and loan amounts? How does the extent of complementarity or substitutability of the LT sector depend on, and to what extent do changes in the regulatory and macroeconomic environment affect, the interaction between the banking and LT sectors?
Purpose of the article: The aim of the article is to identify trends in the LT sector within FinTech in the context of assessing the scale and determinants of current and future comple-mentarity of the non-bank sector and the banking sector in the area of consumer credit in time of black swans. An additional purpose of the article is to estimate revenues from the basic operating activities of companies from the on-line channel.
Methods: The research process was multi-stage and the research procedure was structured. Due to the lack of a uniform source of data on LT products and services, the study used many data sources — data from the Credit Information Bureau, a primary nationwide survey on LT users a primary survey of people representing LT's managerial staff. The selection of LTs was carried out according to the concept of the monetary sampling unit. The Horvitz-Thompson estimator with Sen-Yates-Grundy variance form was used to estimate net operating income for LT from the online channel in 2021.
Findings & value added: The LT companies surveyed state that black swans (the COVID-19 pandemic and the war in Ukraine) and the current macroeconomic situation have not significantly affected demand for non-banking loans. The reduction in the opportunities for the LT sector as a result of anti-usury regulations will only lead to a shift in consumer demand to the pawnshop sector and the shadow economy, which will be detrimental to consumers. Complementarity between LT and the banking sector is revealed especially in crisis situations, thus limiting the effects of market shock (limited supply of loans offered by banks). In periods of stabilisation, a rather clear division of preferences is noticeable – in the case of seniors and loans for higher amounts, banks dominate, while in the case of lower amounts and in younger age groups, non-bank institutions are more popular. The mechanism by which shrinking banking services are replaced by LT in short-term crises confirms the importance of LT in balancing the Consumer Finance market in the face of unstable periods. From a medium- and long-term perspective, it should be noted that inflation and rising interest rates will increase the scale of credit exclusion in commercial banks, shifting part of the demand to the non-bank sector. These phenomena have an international dimension. Similar observations were made already in 2012 by the CFPB in the USA and the British FTA, when analysing the consumer finance market immediately after the subprime crisis, emphasising the effects of limiting access to bank consumer loans and the resulting growth of the LT market (Gębski, 2013).
... Social cohesion theory states that the transition of the economy toward green energy can empower cultural and social standards by encouraging sustainable development and nurturing a sense of mutual responsibility (Duhaime et al. 2004;Lode et al. 2022;Plikynas et al. 2022). Furthermore, the theory posits that economies with higher financial inclusion enjoy maximum socioeconomic sustainability by reducing social tensions and inequalities through enhancements in savings and investments (Njanike and Mpofu 2023;Ozili 2020). Conversely, the peace dividend theory postulates that reducing government defense financing during worldwide peace can boost funding for social welfare programs by substantially impacting socioeconomic sustainability (Mayberry 2023;Rohner and Thoenig 2021). ...
The key objective of this research work is to examine the influence of green energy (GRE), financial inclusion (FIN), and government defense financing (GDF) on socioeconomic sustainability (SES) by taking a sample of 121 nations within the time range of 2003–2022. The sample is additionally categorized into three diverse income-level groups, including 44 high-income, 33 upper-middle-income, and 44 low- and lower-middle-income nations for better contribution and evaluation. We employed a two-step system GMM as prime and Driscroll–Kraay (D–K) fixed effect regression and 2SLS as robust techniques, respectively. The findings unveiled that GRE and FIN are significantly beneficial for socioeconomic sustainability in all groups; however, these factors have a lesser impact in high-income countries. Furthermore, GDF has a negative but a non-significant linkage with SES at the global, low-, and lower-middle-income levels. Simultaneously, GDF significantly improves SES in high-income countries while has a non-significantly positive influence on SES in upper-middle-income countries. On the other hand, security motives (SMT) significantly harm SES in all categories except the high-income nations group. Moreover, institutional quality (INQ) significantly harms SES worldwide and in high-income countries. This research study also yields some suitable policy measures to achieve SDGs.
Graphical Abstract
... Điều đó đòi hỏi các nghiên cứu về vai trò của khu vực tài chính và tăng trưởng cần được mở rộng theo cả chiều rộng lẫn chiều sâu để có thể nhìn nhận sâu sắc hơn các vấn đề tài chính cũng như các kết nối giữa khu vực tài chính tới các khu vực khác, khía cạnh khác của nền kinh tế. Theo đó, các nghiên cứu về mối quan hệ này được mở rộng và phát triển (Ozili, 2020) T ác động của tài chính toàn diện đến tăng trưởng kinh tế là một trong những vấn đề được nghiên cứu và tranh luận đa chiều trong thời gian gần đây. Các kết quả nghiên cứu lý thuyết và thực nghiệm với số liệu cấp quốc gia đều cho thấy mối quan hệ giữa mở rộng tài chính toàn diện đến tăng trưởng kinh tế tồn tại khá chặt chẽ và có ý nghĩa cao. ...
... Lý thuyết này nhấn mạnh rằng phát triển khu vực tài chính sẽ giúp nới lỏng các điều kiện tài chính và gia tăng lượng cho vay nhằm khuyến khích tăng trưởng kinh tế và các trung gian tài chính, cũng như phân bổ tín dụng hướng tới gia tăng năng suất và gia tăng sản lượng. Đến năm 2020, các nghiên cứu lý thuyết được mở rộng và hoàn thiện cho đến nghiên cứu của (Ozili, 2020) đã đề xuất một lý thuyết hệ thống hơn về tài chính toàn diện. Lý thuyết của Ozili đề xuất cho rằng các kết ! ...
The impact of financial inclusion on economic growth has been researched and debated multi-dimensionally recently. Theoretical and empirical research results with cross-country data show that the relationship between inclusion financial expansion and economic growth exists quite closely and is highly significant. But whether this impact relationship is positive or negative, big impact or a small impact, is different depending on the context of each country. With the goal of researching the relationship between financial inclusion and economic growth for Vietnam in the period 2016 - 2020, household-level data and provincial-level data for Vietnam are selected. The results show that enhancing financial inclusion has a largely positive impact on GRDP per capita. In addition, increasing the proportion of trained workers in the workforce, enhancing digital infrastructure through the internet usage rate, reducing multidimensional poverty, while minimizing negative impacts from the Covid pandemic will improve economic growth in Vietnam in the period 2016 - 2020.
... Research has explored financial inclusion in the context of various financial services, such as banking services, remittances, insurance, microfinance, and digital financial services (Fernández-Olit et al., 2019). Moreover, investigations have been conducted into the association between financial inclusion and social inclusion (Ozili, 2020). However, Peterson (2021) suggested that more approaches are required to investigate excluded members of the population while acknowledging the procedural and study size difficulties associated with such approaches (see also Fernández-Olit et al., 2019). ...
... Existing literature documents FI's economic, social, human resources, and environmental implications (Ozili, 2020;Adegbite & Machethe, 2020;Offiong et al., 2021;Nizam et al., 2021). Most of these investigations were conceptual, and a few of them were based on secondary data. ...
The world is currently transitioning from a paradigm of purely economic growth to one of inclusive growth. Financial inclusion (FI) as a driver of inclusive growth and poverty alleviation has attracted significant attention in this epochal transition. Although many excellent works have been published regarding advanced applications of FI and FI-poverty alleviation mechanisms, no work has been done to systematically discuss the interaction of financial literacy (FL) and the mediation of inclusive growth, particularly in Pakistan. Therefore, we examine how FI and the interaction of FI and FL explain their successful translation into inclusive growth and poverty alleviation. To better understand the mechanism, we examine SME perspectives in Pakistan using deductive and cross-sectional study designs and employ mediational and moderated mediational approaches through structural equation modeling technique in Amos 24. This is a significant oversight because small firms are often neglected when accessing financial services. Our findings show that, first, FI influences inclusive growth and poverty alleviation, respectively. Second, it demonstrated the inclusive growth mediation link between FI and poverty alleviation. Finally, FL strengthens the mediational link between FI, inclusive growth, and poverty alleviation. Yet, in the face of low FL, we also suggest that the FI will start to converge in ways that are problematic for a nation’s SME sector in promoting inclusive growth and poverty alleviation. This insight contributes to an important understanding of the efficacy of FI as an inclusive growth and poverty reduction tool.
... Firstly, FI is an effective strategy for attaining the UNs sustainable development goals (Demirguc-Kunt et al., 2017;Sahay et al., 2015). Secondly, FI is aimed at enhancing the depth of social inclusion in many economies (Ozili, 2020). Thirdly, FI helps in handling povertyrelated issues (Chibba, 2009;Neaime and Gaysset, 2018). ...
... Thirdly, FI helps in handling povertyrelated issues (Chibba, 2009;Neaime and Gaysset, 2018). Finally, FI is able to attract other socioeconomic benefits (Sarma, 2016;Ozili, 2020). These factors influence policymakers to dedicate resources to increasing FI depth and managing the problem of financial exclusion (Ozili, 2021). ...
... Overall, the results of this research are relatively consistent with previous studies on FI whereby the scores for MENA countries or Middle East countries (with the exception of Israel) are relatively lower compared to other regions such as East Asia, South East Asia, Europe and North America (Ozili, 2020(Ozili, , 2021Park and Mercado, 2021;Sarma, 2016). ...
... Future studies can also examine the effect of corporate sustainability on financial inclusion. Future studies can also examine the effect of corporate governance on social inclusion since financial inclusion and social inclusion are intertwined as documented in Ozili (2020). Future studies can also re-examine the association between corporate governance and financial inclusion at the firm-level. ...
Purpose
This paper examines the association between corporate governance and financial inclusion in terms of correlation. This paper examines whether countries that have a strong corporate governance environment also experience better financial inclusion outcomes.
Design/methodology/approach
The indicators of financial inclusion are automated teller machines (ATMs) per 100,000 adults, bank accounts per 1,000 adults and bank branches per 100,000 adults, while the indicators of corporate governance are extent of corporate transparency index, the extent of director liability index, the extent of disclosure index, the extent of ownership and control index, the extent of shareholder rights index, minority investors protection index and ease of shareholder suits index. The association was analyzed using Pearson correlation analysis and granger causality test.
Findings
Strong corporate governance is significantly associated or correlated with better financial inclusion outcomes. The regional analyses show that corporate governance has a significant positive association with financial inclusion in Asian countries and in Middle East countries. However, a positive and negative association was observed between some indicators of corporate governance and financial inclusion in European countries, North American countries, South American countries, African countries and in Middle East and North Africa (MENA) countries, implying that strong corporate governance has a positive and negative association with financial inclusion depending on the indicators of corporate governance and financial inclusion used. There is also evidence of uni-directional granger causality between corporate governance and financial inclusion.
Originality/value
Little is known about the association between corporate governance and financial inclusion. This paper is the first to examine this association.
... Numerous Small and Medium-Sized Businesses (SMEs) cannot handle the COVID-19 pandemic [3]. Since the outbreak began, many businesses have stopped operating and stayed shuttered [4]. ...
In Southeast Sulawesi, during the Corona Virus Disease Pandemic, this study sought to examine the impact of the strategic orientation dimension on the market performance of the culinary industry. The descriptive and quantitative methods used non-probability sampling and a purposive sample technique. During the COVID-19 pandemic, the population was made up of actors in the food industry who had managed to survive and run their companies for more than two years. Only 38 people responded to the survey's sample, which was small. This study used Smart-PLS 3.0's route analysis for data analysis. To help culinary business actors perform better in the market during the COVID-19 pandemic, the analysis of the strategic aspects that have an aggressive attitude and significantly affect market performance were presented.
... Incluso el G20 ha considerado a la inclusión financiera como tema estratégico para fomentar el crecimiento económico y apoyar a la población más vulnerable, reconociendo su mención y promoción en la cumbre de las Naciones Unidas donde se establece la agenda 2030 para el desarrollo sostenible (Global Partnership for Financial Inclusion, 2017). De igual forma, se ha demostrado que la inclusión financiera promueve el desarrollo económico de una región (Xu, 2020), facilita las transferencias de dinero y por ende los pagos a gobierno (Demirgüç-Kunt y Klapper, 2013), ayuda a reducir la pobreza (Burgess y Pande, 2005; Honohan, 2008) lo mismo que la desigualdad (Honohan, 2008) y fomenta el empoderamiento de las mujeres en los ámbitos productivo, familiar y personal (Ozili, 2020; Lara, Azar y Mejía., 2018). ...
El objetivo del trabajo es examinar la relación entre inclusión financiera y complejidad económica en México. Para ello, se desarrolló un estudio empírico haciendo las estimaciones del Índice de Complejidad Económica y el Índice de Inclusión Financiera (de acceso y uso) para el año 2018. A partir de dichos índices se realiza un análisis descriptivo, correlacional y exploratorio de datos espaciales. Los resultados muestran que "la inclusión financiera y la complejidad tienen una correlación directa, intensa y significativa, aunado a una autocorrelación espacial positiva". Lo anterior es evidencia empírica valiosa porque se demuestra que los polos de alta complejidad económica son a su vez polos de inclusión financiera (uso) y que las zonas significativamente bajas en términos de complejidad son zonas de exclusión financiera (acceso). Una limitación del trabajo es que se basa en 2 de las 4 dimensiones de la inclusión financiera y su originalidad radica en que no existen estudios previos que relacionen la inclusión financiera con la complejidad y que ésta última es calculada haciendo uso de un mejor proxy de las capacidades industriales a escala municipal.. Clasificación JEL: O10, N20, C00. Palabras clave: inclusión financiera, complejidad económica y análisis exploratorio de datos espaciales.
