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Impact of terrorism on financial inclusion: evidence from the most terrorized countries in the world

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  • Ozili, Peterson K

Abstract

This study investigates the impact of terrorism on financial inclusion that is achieved through ATM penetration and bank branch expansion. Eight countries that are the most terrorized countries in the world were analysed using the panel fixed effect regression model and the generalized linear model. The results provide evidence that terrorism reduces the level of financial inclusion in countries experiencing terrorism, but the presence of strong legal institutions, accountability governance institutions and political stability governance institutions mitigate the adverse effect of terrorism on financial inclusion.

Suggested Citation

  • Ozili, Peterson K, 2024. "Impact of terrorism on financial inclusion: evidence from the most terrorized countries in the world," MPRA Paper 120154, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:120154
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    References listed on IDEAS

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    1. Jo Beall, 2006. "Cities, terrorism and development," Journal of International Development, John Wiley & Sons, Ltd., vol. 18(1), pages 105-120.
    2. Bandyopadhyay, Subhayu & Younas, Javed, 2011. "Poverty, political freedom, and the roots of terrorism in developing countries: An empirical assessment," Economics Letters, Elsevier, vol. 112(2), pages 171-175, August.
    3. Asongu, Simplice A. & Nwachukwu, Jacinta C., 2017. "The Impact of Terrorism on Governance in African Countries," World Development, Elsevier, vol. 99(C), pages 253-270.
    4. Franklin Allen & Elena Carletti & Robert Cull & Jun ‘QJ’ Qian & Lemma Senbet & Patricio Valenzuela, 2014. "The African Financial Development and Financial Inclusion Gaps," Journal of African Economies, Centre for the Study of African Economies, vol. 23(5), pages 614-642.
    5. Abadie, Alberto & Gardeazabal, Javier, 2008. "Terrorism and the world economy," European Economic Review, Elsevier, vol. 52(1), pages 1-27, January.
    6. Banna, Hasanul & Mia, Md Aslam & Nourani, Mohammad & Yarovaya, Larisa, 2022. "Fintech-based Financial Inclusion and Risk-taking of Microfinance Institutions (MFIs): Evidence from Sub-Saharan Africa," Finance Research Letters, Elsevier, vol. 45(C).
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    More about this item

    Keywords

    Terrorism; financial inclusion; access to finance; institutions; commercial bank branchs; ATM.;
    All these keywords.

    JEL classification:

    • G00 - Financial Economics - - General - - - General
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • I39 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Other

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