Index of Financial Inclusion: Some Empirical Results

Sinha, Ram Pratap

doi:10.1007/978-81-322-1650-6_28

Cited by 8 publications

(13 citation statements)

References 1 publication

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“…This value shows that banking services are utilized by the people. That citizens have a bank account is not sufficient for a comprehensive financial system; it should be functional (Sarma, 2008). At the same time, the mean values of outstanding deposits and loans are 59.69 and 44.91, respectively.…”

Section: Descriptive Statisticsmentioning

confidence: 97%

“…A robust and inclusive measure of financial inclusion is required to evaluate the degree of financial inclusion in different countries or different regions in a country at a particular time to review various government policies and initiatives and to see the relationship between financial inclusion and other variables such as economic development and income equality (Sarma, 2008). Few studies have used single variable proxies for measuring financial inclusion, which may not give a true image of its linkage with economic development.…”

Section: Review Of Literaturementioning

confidence: 99%

“…According to Anarfo et al (2019), it is important to consider different dimensions of financial inclusion for good policy making. Some studies developed a multidimensional index to quantify financial inclusion (Anarfo et al, 2019;Gupte et al, 2012;Park & Mercado, 2018;Sarma, 2008Sarma, , 2012Sarma, , 2016Sethi & Sethy, 2018;Yadav & Sharma, 2016) and most of them used indicators for financial inclusion such as branch penetration, access and usage of financial services. Developing an index can be helpful in evaluating the status of financial inclusion in different states or countries for different time periods or of states and economies of similar temperament for the same period (Yadav & Sharma, 2016).…”

Section: Review Of Literaturementioning

confidence: 99%

“…The present study considers both dimensions of financial inclusion, access side as well as usage side. Many studies have used banking institution indicators for financial inclusion (Anarfo et al, 2019;CRISIL, 2013;Ghosh, 2011;Gupte et Al., 2012;Park & Mercado, 2018;Raza et al, 2019;Sarma & Pais, 2011;Sarma, 2008;Sethi & Acharya, 2018;Sethi & Sethy, 2018;Sharma, 2016). Different studies have used different banking institution indicators to measure the level of financial inclusion.…”

Section: Data Source and Description Of Variablesmentioning

confidence: 99%

“…The proposed index is more inclusive in nature as it is considering key aspects of financial inclusion. In this perspective, Sarma (2008) mentioned that index based on individual dimension may be misleading since it provides incomplete information on the financial inclusion.…”

Section: Financial Inclusion Indexmentioning

confidence: 99%

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Linkage between Financial Inclusion and Economic Growth: An Empirical Study of the Emerging Indian Economy

Dahiya

Kumar

2020

Vision

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Inclusive financial system is a key to sustainable development and growth of a nation wherein all segments of the society have timely access to financial services at an affordable cost. It facilitates safe custody of savings, availability of loan for multiple purposes, diversification of risk through investment in different avenue, coverage of risk through various insurance products, etc., which make the life of people easier and comfortable. Therefore, inclusive finance leads to prosperity and economic growth by eliminating or minimizing poverty, unequal distribution of income and dominance of indigenous bankers. Financial inclusion is not a single dimension that can be achieved directly; rather, it is a process which completes after different dimensions such as access to and usage of financial services and banking penetration are accomplished. The present study considers three main dimensions of financial inclusion: usage, penetration and accessibility. The purpose is to observe how financial inclusion is linked with economic growth in India. Spread over 2005 to 2017, the study uses Bayesian vector auto-regression model to explore the linkage of economic growth with financial inclusion and its different dimensions (accessibility, penetration, and usage). The findings show a considerable relationship between economic growth and the usage dimension of financial inclusion in India. As far as financial inclusion index is concerned, it does not explain economic growth significantly. This study is based on recent data extracted from IMF and World Bank databases. The study is useful for policymakers and banks to frame appropriate policies to achieve complete financial inclusion that would lead to a robust growth of an economy.

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Section: Descriptive Statisticsmentioning

confidence: 97%

Section: Review Of Literaturementioning

confidence: 99%

Section: Review Of Literaturementioning

confidence: 99%

Section: Data Source and Description Of Variablesmentioning

confidence: 99%

Section: Financial Inclusion Indexmentioning

confidence: 99%

See 3 more Smart Citations

Linkage between Financial Inclusion and Economic Growth: An Empirical Study of the Emerging Indian Economy

Dahiya

Kumar

2020

Vision

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Does financial inclusion enhance economic growth? Empirical evidence from the IsDB member countries

2020

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This innovative study examines the effect of financial inclusion measured by financial inclusion index (FII) on the economic growth of the Islamic Development Bank (IsDB) member countries. The data were collected on different elements of financial inclusion and economic growth for the period 2000-2016.To draw multi-dimensional results, we have set up the panel data for 45 countries, and we estimated the generalized method of moments (GMM), two-stage least squares (2SLS), panel vector autoregressive (VAR) and panel Granger causality tests. Based on the results of dynamic panel estimations, we find that FII has a positive effect on economic growth. The findings of Granger causality analysis reveals a bi-directional causality of FII indicators with economic growth and a unidirectional causality between the FII and economic growth.Therefore, it suggests that the financial inclusion index has a positive effect on the economic growth in IsDB member countries. These findings recommend that the policymakers should consider financial inclusion as a driver of the economic growth in the long run. The empirical findings have useful policy insights for the IsDB member countries.

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Understanding Financial Inclusion in India: A Theoretical Framework Building Through SAP–LAP and Efficient IRP

Malik

Maheshwari

Singh

2019

Glob J Flex Syst Manag

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The purpose of this paper is to analyse the current financial inclusion situation in India, identify the gaps and suggest some way forward to bridge these gaps. In this study, situation-actor-process (SAP) learning-action-performance (LAP) model is applied to present the comprehensive view on financial inclusion in India. Further, the interrelation between the various elements of SAP-LAP is established through efficient interpretive ranking process. The SAP-LAP model helps to better understand the current situation of financial inclusion and helps the 'actors' to initiate appropriate actions based on the 'learning' of the study. The study highlights the area where stakeholders need to focus for better inclusion of people under banking system. The paper is first of its kind which provides a systematic framework to study the financial inclusion in India using SAP-LAP framework.

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Index of Financial Inclusion: Some Empirical Results

Cited by 8 publications

References 1 publication

Linkage between Financial Inclusion and Economic Growth: An Empirical Study of the Emerging Indian Economy

Linkage between Financial Inclusion and Economic Growth: An Empirical Study of the Emerging Indian Economy

Does financial inclusion enhance economic growth? Empirical evidence from the IsDB member countries

Understanding Financial Inclusion in India: A Theoretical Framework Building Through SAP–LAP and Efficient IRP

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