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Measuring Financial Inclusion in Southeast European Countries Using Multidimensional Index of Financial Inclusion

Author

Listed:
  • Vesna Vesna Zukić
  • Meldina Kokorović Jukan

Abstract

This paper provides an insight into measuring financial inclusion through a multidimensional index of financial inclusion in Southeast European countries (SEE). We used a two-stage principal component analysis to extract dimensions of financial inclusion. Data were obtained from two sources, the World Bank Global Findex Survey (WB-GFS) data base and the International Monetary Fund Financial Access Survey data (IMF-FAS), for twelve SEE countries for the years 2011, 2014, 2017, and 2021. The research confirms that financial inclusion can be measured using two dimensions in terms of access as one factor and usage and availability as the second factor. Practical implications of this research are in ensuring an adequate measure of the level of financial inclusion for SEE countries that can be used for further research related to understanding the underlying factors contributing to financial inclusion, barriers to financial inclusion as well as the impact of financial inclusion on economic growth and poverty alleviation.

Suggested Citation

  • Vesna Vesna Zukić & Meldina Kokorović Jukan, 2023. "Measuring Financial Inclusion in Southeast European Countries Using Multidimensional Index of Financial Inclusion," International Business Research, Canadian Center of Science and Education, vol. 16(8), pages 1-39, August.
    • Handle: RePEc:ibn:ibrjnl:v:16:y:2023:i:8:p:39
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    References listed on IDEAS

    as
    1. Mandira Sarma, 2008. "Index of Financial Inclusion," Working Papers id:1575, eSocialSciences.
    2. Mandira Sarma, 2016. "Measuring Financial Inclusion using Multidimensional Data," World Economics, World Economics, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE, vol. 17(1), pages 15-40, January.
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    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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