Regional financial inclusion and poverty: Evidence from Indonesia

Autor: Muhammad Firdaus, Iwan Fathi Fauzan, Sahara Sahara
Jazyk: angličtina
Rok vydání: 2020
Předmět:
Zdroj: Economic Journal of Emerging Markets; Volume 12 Issue 1, 2020; 25-38
Economic Journal of Emerging Markets, Vol 12, Iss 1, Pp 25-38 (2020)
ISSN: 2086-3128
2502-180X
Popis: This paper builds a financial inclusion index of thirty-three provinces in Indonesia from formal financial institutions banks. It aim at analyzing how the financial inclusion index relates to regional poverty using a spatial panel econometric approach. Findings/Originality: The results show that the average financial inclusion index of each province in Indonesia is still in a low category, and there is a financial system development inequality between DKI Jakarta Province and other regions. We also find that poverty has a significant negative effect on the financial inclusion index. With the recent migration of residents as a spatial weighting matrix, we decompose the global effect of the poverty variable on the financial inclusion index into a local effect for each province.
Databáze: OpenAIRE