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What drives financial exclusion in Mexican municipalities?

Author

Listed:
  • Paula Cruz-García

    (Department of Economic Analysis, Universitat de Valencia, Spain)

  • María del Carmen Dircio Palacios Macedo

    (Universidad Popular Autónoma del Estado de Puebla, Mexico and Department of Economics, Universitat Jaume I, Castellón, Spain)

  • Emili Tortosa-Ausina

    (IVIE, Valencia and Department of Economics, Universitat Jaume I, Castellón, Spain)

Abstract

Although in recent years there has been a growth in banking services in Mexico, there is still a significant delay in terms of financial inclusion, and it is also very uneven between municipalities. In this context, this paper analyzes the factors that determine the probability of a municipality to be financially excluded. The results show that these municipalities are characterized by a small number of inhabitants and low levels of income and education. The analysis is also carried out distinguishing between municipalities according to the region in which they are located and to their type of population. The results also show that, in general, the municipalities located in the Sur region of the country are the most affected by financial exclusion. One of the main reasons is that more than 70% of the municipalities in the Sur region are rural or in transition, being the metropolitan, semi-metropolitan and urban municipalities the least affected by financial exclusion.

Suggested Citation

  • Paula Cruz-García & María del Carmen Dircio Palacios Macedo & Emili Tortosa-Ausina, 2020. "What drives financial exclusion in Mexican municipalities?," Working Papers 2020/19, Economics Department, Universitat Jaume I, Castellón (Spain).
    • Handle: RePEc:jau:wpaper:2020/19
    as

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    File URL: http://www.doctreballeco.uji.es/wpficheros/Cruz_et_al_19_2020.pdf
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    More about this item

    Keywords

    Financial exclusion; Mexico; Mexican regions;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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