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Institutional theory of financial inclusion

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  • Ozili, Peterson K

Abstract

This article advocates a new addition to the theories of financial inclusion which is the institutional theory of financial inclusion. The case for a new theory arises from the role of institutions or non-market structures in influencing the level of financial inclusion. Postulating an institutional theory of financial inclusion is important due to the need to understand financial inclusion from the context of institutions and non-market structures that people have a great deal of trust in. The institutional theory of financial inclusion has the capacity to generate a wide range of testable hypotheses, and can provide the social scientist with tools that are relevant for understanding the broad spectrum of financial inclusion in society.

Suggested Citation

  • Ozili, Peterson K, 2023. "Institutional theory of financial inclusion," MPRA Paper 115770, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:115770
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    File URL: https://mpra.ub.uni-muenchen.de/115770/1/MPRA_paper_115770.pdf
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    References listed on IDEAS

    as
    1. Kazeem B. Ajide & Olorunfemi Y. Alimi & Simplice A. Asongu & Ibrahim D. Raheem, 2022. "The role of institutional infrastructures in financial inclusion‐growth relations: Evidence from SSA," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(1), pages 175-191, January.
    2. Kebede, Jeleta & Selvanathan, Saroja & Naranpanawa, Athula, 2021. "Foreign bank presence, institutional quality, and financial inclusion: Evidence from Africa," Economic Modelling, Elsevier, vol. 102(C).
    3. Onyinye I. Anthony-Orji & Anthony Orji & Jonathan E. Ogbuabor & Emmanuel O. Nwosu, 2019. "Do financial stability and institutional quality have impact on financial inclusion in developing economies? A new evidence from Nigeria," International Journal of Sustainable Economy, Inderscience Enterprises Ltd, vol. 11(1), pages 18-40.
    4. Subika Farazi, 2014. "Informal Firms and Financial Inclusion: Status and Determinants," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 5(03), pages 1-28.
    5. Farazi, Subika, 2014. "Informal firms and financial inclusion : status and determinants," Policy Research Working Paper Series 6778, The World Bank.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    financial inclusion; institutions; institutional theory; access to finance; non-market structure; culture; unbanked adults; financial exclusion.;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • P37 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Legal

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