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Trust and financial inclusion: A cross-country study

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  • Xu, Xiaoyan

Abstract

This study examines the role of social trust in financial inclusion around the world, using financial inclusion measures from Global Findex database and measure of trust from the World Values Survey. After controlling for individual characteristics, and country level differences in institutions and financial markets, social trust remains a significant and positive determinant for various aspects of financial inclusion. Trust is further found to supplement weak formal institutions and low educational levels. The role of limited trust is also examined in the study.

Suggested Citation

  • Xu, Xiaoyan, 2020. "Trust and financial inclusion: A cross-country study," Finance Research Letters, Elsevier, vol. 35(C).
    • Handle: RePEc:eee:finlet:v:35:y:2020:i:c:s1544612319303915
    DOI: 10.1016/j.frl.2019.101310
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