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MICRO AND MACRO FINANCIAL INCLUSION AND THEIR IMPACTS ON ECONOMIC GROWTH: EVIDENCE FROM ASIAN ECONOMIES WITH ALTERNATIVE APPROACHES |
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| รหัสดีโอไอ | |
| Creator | Jamshed Ali, Muhammad Arshad Khan |
| Title | MICRO AND MACRO FINANCIAL INCLUSION AND THEIR IMPACTS ON ECONOMIC GROWTH: EVIDENCE FROM ASIAN ECONOMIES WITH ALTERNATIVE APPROACHES |
| Contributor | - |
| Publisher | TuEngr.com |
| Publication Year | 2563 |
| Journal Title | International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies |
| Journal Vol. | 11 |
| Journal No. | 6 |
| Page no. | 11A06A: 1-15 |
| Keyword | Micro-FII, Macro-FII, Financial inclusion indices, Economic growth, Dynamic Factor Model (DFM), Financial development indicators, GMM. |
| URL Website | https://tuengr.com/Vol11_6.html |
| Website title | ITJEMAST V10(6) @ TuEngr.com |
| ISSN | 2228-9860 |
| Abstract | This study examines the impacts of financial inclusion on economic growth in a panel of 20 Asian economies using annual data over the period 1995-2017. Two separate indices, namely micro-financial inclusion and macro-financial inclusion were constructed following Sarma (2008) and the Dynamic Factor Model. The impact of each index, as well as individual indicators of financial inclusion, is analyzed to get deeper insights into the impact of financial inclusion on economic growth in Asian economies. The impact of the micro-financial inclusion index based on Saram's (2008) methodology is found to be significant, while the impact of macro-financial inclusion index remains insignificant. In contrast, the impact of DFM-based micro and macro-financial inclusion indices exerts an insignificant impact on economic growth. The difference in results could be due to the fact that Sharma's index measures the level of financial inclusion, while DFM-based indices reflect the growth of financial inclusion indicators. With regard to the individual indicators of financial inclusion, the results show that a number of banks, borrower accounts, and deposit accounts have a significant positive impact on economic growth, while financial system deposits and insurance premium exerts an insignificant impact on economic growth. |
