Financial Inclusion and Firms Growth in Manufacturing Sector: A Threshold Regression Analysis in Selected Asean Countries

Nizam, Rosmah; Karim, Zulkefly Abdul; Sarmidi, Tamat; Rahman, Abdul Malek Abdul

doi:10.3390/economies8040080

Cited by 12 publications

(11 citation statements)

References 30 publications

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“…Ratnawati [80] found explicit confirmation regarding increased access to financial services, including access to credits, leading to the growth of market share, sales and the number of workers for micro, small and medium companies. Similar findings could be seen in other studies where Le et al [81], and Yang & Zhang [54] generalized that the FI determined a company's positive growth and performance. However, some scholars had inconsistent findings [81] to the present study, stating that FI does not influence SMEs.…”

Section: Resultssupporting

confidence: 89%

“…Similar findings could be seen in other studies where Le et al [81], and Yang & Zhang [54] generalized that the FI determined a company's positive growth and performance. However, some scholars had inconsistent findings [81] to the present study, stating that FI does not influence SMEs. However, FI aims to offer financial services and products through safe, affordable and community-wide accessibility to alleviate poverty and inequality.…”

Section: Resultssupporting

confidence: 89%

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Do Digital Finance and the Technology Acceptance Model Strengthen Financial Inclusion and SME Performance?

Thathsarani

Jian-guo

2022

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Digital inclusive finance, as a vital engine for the country’s high-quality growth, provides new impetus and prospects for encouraging economic development during the looming economic downturn. SMEs play a significant role in economic growth and development, particularly in developing countries. However, value promoting financial inclusion for SMEs through digitalization is still understudied. The objectives aimed at by this investigation were: to study the impact of financial inclusion on SME performances, to observe the influence of digital financing on financial inclusion and SME performance association as a mediator and to examine how the Technology Acceptance Model (TAM) supports financial inclusion and SME performance. A well-structured questionnaire using a quantitative research approach was utilized to gather data from 366 owner-managers among Sri Lankan SMEs. The study’s findings are presented: financial inclusion, digital financing and TAM play influential roles in SME performance. More precisely, digital financing and TAM mediate positively the relationship between financial inclusion and performance in SMEs. The findings of this research endeavor to shed light on developing and popularizing digital financing by providing services which are cheap, secure and low risk from a supply-side perspective, as well as adopting and adjusting digital financing by enhancing financial literacy, which would be necessary from the demand-side perspective.

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Section: Resultssupporting

confidence: 89%

Section: Resultssupporting

confidence: 89%

Do Digital Finance and the Technology Acceptance Model Strengthen Financial Inclusion and SME Performance?

Thathsarani

Jian-guo

2022

Information

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“…The study conducted on the data from 2005 to 2016 found that achieving a threshold level of financial inclusion helps control corruption. In Malaysia, the Philippines, and Vietnam, the effect of access to formal credit on manufacturing firms' growth was studied by Nizam, Karim, Sarmidi, and Rahman (2020b). They found a non-monotonic impact of financial inclusion on the firm's growth, i.e., it is significantly positive below a threshold point, but beyond a certain point, it becomes negative.…”

Section: Literature Reviewmentioning

confidence: 99%

Determinants of financial inclusion in gulf cooperation council countries

Uddin

Ahmad

Dar

et al. 2023

IJAEFA

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The primary purpose of this study is to investigate the determinants of financial inclusion in the Gulf Cooperation Council (GCC) countries. For this study, we used the Global Findex Database 2017. Since the study variables are binary, we used the Probit method to estimate the results. Our findings show that the number of people who reported having a formal financial institution account increased by 16 percent between 2011 and 2017. At the same time, formal saving and formal borrowing were low in GCC countries compared to the average of high-income countries’ average. We also found that financial inclusion is higher for males, older people, more educated people, and higher-income people, while women and younger people are less likely to be financially included in GCC countries. Therefore, FI efforts in GCC should focus on the young and women population as they are most likely to be excluded from the formal financial system. Therefore, tailored products and services that meet the needs of these groups should be designed and promoted to improve FI among them so that their access to and use of financial services are enhanced.

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“…The use of threshold regressions stems from the need to model nonlinear relationships and fit a model that allows obtaining an estimate of the threshold and the coefficients of the explanatory variables on each side of the threshold. Various investigations support the usefulness of the methodology proposed by Hansen [14,[58][59][60][61][62][63][64][65]. The tests performed before estimating the final threshold model should be emphasized.…”

Section: The Modelmentioning

confidence: 99%

Heterogeneity in the Causal Link between FDI, Globalization and Human Capital: New Empirical Evidence Using Threshold Regressions

et al. 2022

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Human capital formation in developing countries is a policy instrument to promote economic progress. In recent decades, FDI can act as a mechanism for transmitting human capital in the context of highly globalized countries. Extensive literature indicates that the formation of human capital is one of the most effective mechanisms for promoting structural change in countries. This research examines the causal link between FDI flows, globalization, and knowledge. This relationship is moderated by the index of electoral democracy, employment in agriculture, rent from natural resources, export diversification, and fertility. We employ a set of threshold regressions based on the idea that FDI levels will be significant and permanent as long as FDI transmits knowledge to recipient countries from a substantial level of FDI. The results show a threshold effect in the electoral democracy index and foreign direct investment at the global level and high- and upper-middle-income countries. In addition, we found a threshold effect for the electoral democracy index in the East Asia Pacific regions and the Middle East and North African countries. There is a threshold effect in East Asia, the Pacific, and Latin America in FDI. Based on the results, policymakers should promote FDI and electoral democracy flows above the threshold to encourage the transfer of human capital in the countries analyzed.

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Financial Inclusion and Firms Growth in Manufacturing Sector: A Threshold Regression Analysis in Selected Asean Countries

Cited by 12 publications

References 30 publications

Do Digital Finance and the Technology Acceptance Model Strengthen Financial Inclusion and SME Performance?

Do Digital Finance and the Technology Acceptance Model Strengthen Financial Inclusion and SME Performance?

Determinants of financial inclusion in gulf cooperation council countries

Heterogeneity in the Causal Link between FDI, Globalization and Human Capital: New Empirical Evidence Using Threshold Regressions

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