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On the evolution over time of Financial Inclusion: A new multivariate index for Mexican municipalities

Author

Listed:
  • María del Carmen Dircio Palacios Macedo

    (Department of Economics, Universitat Jaume I, Castellón, Spain)

  • Paula Cruz-García

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

  • Fausto Hernández-Trillo

    (Center for Research and Teaching in Economics (CIDE), Mexico)

  • Emili Tortosa-Ausina

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

Abstract

Access to financial services is unequal around the world. In many countries, les than half of the population has an account at a financial institution, and this lack of access to finance is often a critical reason behind income inequality and uneven growth. This is the case of Mexico, where financial exclusion affects large shares of the population mainly in rural and poorer localities. This is an ongoing concern for policymakers, since it undermines socioeconomic opportunities for families and businesses alike, hampering economic growth and development. However, assessing the relevance of this issue requires a careful measurement of financial inclusion which, to date, has only been achieved to a limited extent. We contribute to the literature in this context by proposing a multivariate index of financial inclusion for Mexico, at the municipal level, for the period 2013–2021. This index covers several dimensions, including access, and usage. The results corroborate that a large proportion of the population is still unbanked, although it is unevenly distributed across the country.

Suggested Citation

  • María del Carmen Dircio Palacios Macedo & Paula Cruz-García & Fausto Hernández-Trillo & Emili Tortosa-Ausina, 2024. "On the evolution over time of Financial Inclusion: A new multivariate index for Mexican municipalities," Working Papers 2024/06, Economics Department, Universitat Jaume I, Castellón (Spain).
    • Handle: RePEc:jau:wpaper:2024/06
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    References listed on IDEAS

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    More about this item

    Keywords

    composite indicator; financial inclusion; Mexican municipalities; Mexico;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • R51 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Finance in Urban and Rural Economies

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