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Financial Inclusion, Growth and Inequality: A Model Application to Colombia

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  • Ms. Izabela Karpowicz

Abstract

Financial inclusion has been one of the key pillars of Colombia’s development strategy for a number of years. Financial inclusion policies have aimed at channeling microcredit to poor, spreading formal banking system usage, fostering electronic payment acceptance, and making financial services more affordable. Using simulations from a general equilibrium model it is possible to identify the most binding financial sector frictions that preclude financial inclusion of enterprises, and study the effects on growth and inequality of efforts to remove these frictions. The study finds that lowering contraints on collateral promises higher growth while inequality is better tackled through measures that lower the financial participation cost.

Suggested Citation

  • Ms. Izabela Karpowicz, 2014. "Financial Inclusion, Growth and Inequality: A Model Application to Colombia," IMF Working Papers 2014/166, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2014/166
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    References listed on IDEAS

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    1. International Monetary Fund, 2013. "Nicaragua: Staff Report for the 2013 Article IV Consultation," IMF Staff Country Reports 2013/377, International Monetary Fund.
    2. Ricardo N. Bebczuk, 2008. "Financial Inclusion in Latin America and the Caribbean: Review and Lessons," CEDLAS, Working Papers 0068, CEDLAS, Universidad Nacional de La Plata.
    3. Demirguc-Kunt, Asli & Klapper, Leora, 2012. "Measuring financial inclusion : the Global Findex Database," Policy Research Working Paper Series 6025, The World Bank.
    4. International Monetary Fund, 2013. "Mexico: Staff Report for the 2013 Article IV Consultation," IMF Staff Country Reports 2013/334, International Monetary Fund.
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    Cited by:

    1. Gael Fokam & Christelle MAPA & Mathurin ISSABE, 2021. "Gender differences in access to corporate financial services in Cameroon," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 5(10), pages 442-456, October.
    2. Granda, Catalina & Hamann, Franz & Tamayo, Cesar E., 2019. "Credit and saving constraints in general equilibrium: A quantitative exploration," Journal of Development Economics, Elsevier, vol. 140(C), pages 302-319.
    3. Betgilu Oshora & Goshu Desalegn & Eva Gorgenyi-Hegyes & Maria Fekete-Farkas & Zoltan Zeman, 2021. "Determinants of Financial Inclusion in Small and Medium Enterprises: Evidence from Ethiopia," JRFM, MDPI, vol. 14(7), pages 1-19, June.
    4. 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.
    5. Ngasuko, Tri Achya, 2017. "Level Keuangan Inklusif Indonesia 2015: Studi Kasus Data Susenas 2015 [2015 Indonesia Financial Inclusion Level: Case Study On 2015 Susenas Data]," MPRA Paper 99151, University Library of Munich, Germany, revised 01 May 2017.
    6. Khalid Lahrour & Latifa Horr, 2023. "The financial inclusion paradigm: the evolution of concepts in a historical and universal context [Le paradigme de l'inclusion financière : L'évolution des concepts dans un contexte historique et u," Post-Print hal-04346087, HAL.
    7. Ms. Era Dabla-Norris & Yixi Deng & Anna Ivanova & Ms. Izabela Karpowicz & Ms. Filiz D Unsal & Eva VanLeemput & Joyce Wong, 2015. "Financial Inclusion: Zooming in on Latin America," IMF Working Papers 2015/206, International Monetary Fund.
    8. Supramono Supramono & Elsa Stefanie & Theresia Woro Damayanti, 2020. "Fostering Financial Inclusion: The Determinants Of The Users Behaviour Of The Smart Act Branchless Banking Service," Oradea Journal of Business and Economics, University of Oradea, Faculty of Economics, vol. 5(2), pages 20-30, September.
    9. Izabela Karpowicz, 2016. "Financial Inclusion, Growth and Inequality: A Model Application to Colombia," Journal of Banking and Financial Economics, University of Warsaw, Faculty of Management, vol. 2(6), pages 68-89, June.
    10. Tekeste Berhanu Lakew & Hossein Azadi, 2020. "Financial Inclusion in Ethiopia: Is It on the Right Track?," IJFS, MDPI, vol. 8(2), pages 1-13, May.
    11. Thanh Tam Le & Nguyen Dieu Linh Dang & Thi Dieu Thu Nguyen & Thanh Son Vu & Manh Dung Tran, 2019. "Determinants of Financial Inclusion: Comparative Study of Asian Countries," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 9(10), pages 1107-1123, October.
    12. Maria Luisa Jaramillo Gomez & Alvaro Turriago Hoyos & Ulf Thoene, 2015. "Financial inclusion from the perspective of social innovation: The case of Colombia," Proceedings of Business and Management Conferences 3104801, International Institute of Social and Economic Sciences.
    13. repec:igg:jamtr0:v:4:y:2022:i:1:p:1-13 is not listed on IDEAS
    14. Kabakova, Oksana & Plaksenkov, Evgeny, 2018. "Analysis of factors affecting financial inclusion: Ecosystem view," Journal of Business Research, Elsevier, vol. 89(C), pages 198-205.

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