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Social inclusion and financial inclusion: international evidence

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  • Peterson K. Ozili

Abstract

Purpose - This study aims to investigate the association between social inclusion and financial inclusion. Social inclusion and financial inclusion are two major development policy agendas in many countries, and the association between them has received little attention in the policy and academic literature. Design/methodology/approach - The findings reveal a positive and significant correlation between social inclusion and financial inclusion for Asian countries, Middle Eastern countries and African countries while the correlation between social inclusion and financial inclusion is negative for European countries. The findings also show that European and Asian economies experience higher levels of social inclusion and account ownership in a formal financial institution while African countries and Middle Eastern countries experience lower levels of social inclusion and account ownership. Originality/value - The association between social and financial inclusion has received little attention in the policy and academic literature. This is the first study that investigates the association between social and financial inclusion.

Suggested Citation

  • Peterson K. Ozili, 2020. "Social inclusion and financial inclusion: international evidence," International Journal of Development Issues, Emerald Group Publishing Limited, vol. 19(2), pages 169-186, April.
    • Handle: RePEc:eme:ijdipp:ijdi-07-2019-0122
    DOI: 10.1108/IJDI-07-2019-0122
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    References listed on IDEAS

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    9. Ozili, Peterson K, 2019. "Financial Stability: Does Social Activism Matter?," MPRA Paper 92192, University Library of Munich, Germany.
    10. María Eugenia Genoni & Margarita Sánchez & Jaime Saavedra-Chanduví & Suzanne Duryea & Richard Parker & Peter Aggleton & Mayra Buvinic & Ernest Massiah & Omar Arias & Hugo R. Ñopo & Jacqueline Mazza & , 2004. "Social Inclusion and Economic Development in Latin America," IDB Publications (Books), Inter-American Development Bank, number 79929 edited by Mayra Buvinic & Jacqueline Mazza & Ruthanne Deutsch & Juliana Pungiluppi, February.
    11. Peterson K. Ozili, 2018. "Impact of digital finance on financial inclusion and stability," Borsa Istanbul Review, Research and Business Development Department, Borsa Istanbul, vol. 18(4), pages 329-340, December.
    12. Beate Littig & Erich Griessler, 2005. "Social sustainability: a catchword between political pragmatism and social theory," International Journal of Sustainable Development, Inderscience Enterprises Ltd, vol. 8(1/2), pages 65-79.
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    14. David Tuesta & Gloria Sorensen & Adriana Haring & Noelia Camara, 2015. "Financial inclusion and its determinants: the case of Argentina," Working Papers 1503, BBVA Bank, Economic Research Department.
    15. Anthony B. Atkinson & Eric Marlier & Brian Nolan, 2004. "Indicators and Targets for Social Inclusion in the European Union," Journal of Common Market Studies, Wiley Blackwell, vol. 42(1), pages 47-75, February.
    16. Lena Lavinas, 2018. "The Collateralization of Social Policy under Financialized Capitalism," Development and Change, International Institute of Social Studies, vol. 49(2), pages 502-517, March.
    17. Michael Chibba, 2009. "Financial Inclusion, Poverty Reduction and the Millennium Development Goals," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 21(2), pages 213-230, April.
    18. Sara Pavanello & Carol Watson & W. Onyango-Ouma & Paul Bukuluki, 2016. "Effects of Cash Transfers on Community Interactions: Emerging Evidence," Journal of Development Studies, Taylor & Francis Journals, vol. 52(8), pages 1147-1161, August.
    19. Therese Wilson, 2012. "Supporting Social Enterprises to Support Vulnerable Consumers: The Example of Community Development Finance Institutions and Financial Exclusion," Journal of Consumer Policy, Springer, vol. 35(2), pages 197-213, June.
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    Citations

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    Cited by:

    1. Salman Mahmood & Wen Shuhui & Shoaib Aslam & Tanveer Ahmed, 2023. "Financial Inclusion: Does it matter in Alleviating Poverty in Pakistan," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 169(3), pages 1125-1146, October.
    2. Favourate Y. Mpofu, 2022. "Taxation of the Digital Economy and Direct Digital Service Taxes: Opportunities, Challenges, and Implications for African Countries," Economies, MDPI, vol. 10(9), pages 1-28, September.
    3. Peterson K. Ozili, 2023. "Corporate governance and financial inclusion," Journal of Money and Business, Emerald Group Publishing Limited, vol. 3(1), pages 89-107, May.
    4. Peterson K. Ozili, 2023. "Corporate governance and financial inclusion," Journal of Money and Business, Emerald Group Publishing Limited, vol. 3(1), pages 89-107, May.
    5. Adriana Kocornik-Mina & Ramon Bastida-Vialcanet & Marcos Eguiguren Huerta, 2021. "Social Impact of Value-Based Banking: Best Practises and a Continuity Framework," Sustainability, MDPI, vol. 13(14), pages 1-40, July.
    6. Akbar, Syed Waqar & Rehman, Ajid Ur & Bouri, Elie & Ijaz, Muhammad Shahzad & Arshad, Imran, 2024. "Socio-economic issues and bank stability: The moderating role of competition," Research in International Business and Finance, Elsevier, vol. 71(C).
    7. Luiz Antonio Joia & Joaquim Pedro Vasconcelos Cordeiro, 2021. "Unlocking the Potential of Fintechs for Financial Inclusion: A Delphi-Based Approach," Sustainability, MDPI, vol. 13(21), pages 1-19, October.
    8. Kanika Goel & Wasana Bandara & Guy Gable, 2023. "Banking the Unbanked: Conceptualizing Success of the Business Correspondent Model," Information Systems Frontiers, Springer, vol. 25(5), pages 1953-1984, October.
    9. Kosmas Njanike & Raphael T. Mpofu, 2024. "Factors Influencing Financial Inclusion for Social Inclusion in Selected African Countries," Insight on Africa, , vol. 16(1), pages 93-112, January.
    10. Ozili, Peterson K, 2020. "Financial inclusion and Fintech during COVID-19 crisis: Policy solutions," MPRA Paper 111219, University Library of Munich, Germany.

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    More about this item

    Keywords

    Financial inclusion; Access to finance; Sustainability; Social inclusion; Account ownership; G00; G21; O16;
    All these keywords.

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O2 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy

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