nach oben

Social Indicators Research

Erschienen in:

09.06.2021 | Original Research

Does Financial Inclusion Diminish Poverty and Inequality? A Panel Data Analysis for Latin American Countries

verfasst von: Eduardo Polloni-Silva, Naijela da Costa, Herick Fernando Moralles, Mario Sacomano Neto

Erschienen in: Social Indicators Research | Ausgabe 3/2021

Einloggen

Aktivieren Sie unsere intelligente Suche, um passende Fachinhalte oder Patente zu finden.

search-config

KI-gestützte Suche

Aus

Abstract

Despite great developmental efforts in recent decades, Latin America still presents high levels of poverty and inequality when compared to developed nations. As explored widely in the literature, one potential instrument to diminish these issues is financial inclusion, including the access and usage of financial services by all people. Specifically, this paper verifies if financial inclusion and technology adoption decrease the poverty headcount ratio and the Gini index (i.e., inequality) of 13 Latin America countries (Argentina, Bolivia, Brazil, Colombia, Costa Rica, Dominican Republic, Ecuador, El Salvador, Honduras, Panama, Paraguay, Peru, and Uruguay). To perform such analysis, an unbalanced panel dataset was built, and the Feasible Generalized Least Squares (FGLS) and the Limited Information Maximum Likelihood (LIML) techniques were employed. The results suggest that, in accordance with previous studies, financial inclusion is a powerful tool to tackle poverty and inequality. Additionally, the combined effects of financial inclusions and technology (i.e., mobile use) are also capable of decreasing the poverty and inequality levels. We discuss the policy implications of our findings and suggest a future research agenda.

Vorheriger Artikel Subjective Poverty, Material Deprivation Indices and Psychological Distress Among Young Adults: The Mediating Role of Social Capital and Usage of Online Social Networks

Nächster Artikel The Impact of Social Capital on Household Well-being in Pakistan

Sie haben noch keine Lizenz? Dann Informieren Sie sich jetzt über unsere Produkte:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

über 102.000 Bücher
über 537 Zeitschriften

aus folgenden Fachgebieten:

Automobil + Motoren
Bauwesen + Immobilien
Business IT + Informatik
Elektrotechnik + Elektronik
Energie + Nachhaltigkeit
Finance + Banking
Management + Führung
Marketing + Vertrieb
Maschinenbau + Werkstoffe
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Jetzt informieren

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

über 67.000 Bücher
über 340 Zeitschriften

aus folgenden Fachgebieten:

Bauwesen + Immobilien
Business IT + Informatik
Finance + Banking
Management + Führung
Marketing + Vertrieb
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Jetzt informieren

Several financial inclusion variables from the FAS-IMF (e.g., 'Number of registered mobile money accounts', ‘Number of credit cards', 'Number of all microfinance institution branches per 1,000 km2', 'Number of all microfinance institution branches per 100,000 adults', etc.) are mostly unavailable for Latin America countries or only started being published in recent years, which is troublesome for a panel dataset.

Adetunji, O. M., & David-West, O. (2019). The relative impact of income and financial literacy on financial inclusion in Nigeria. Journal of International Development, 31(4), 312–335. https://doi.org/10.1002/jid.3407CrossRef

Álvarez, R., & Bertin, M. J. (2016). Banking competition and firm-level financial constraints in Latin America. Emerging Markets Review, 28, 89–104. https://doi.org/10.1016/j.ememar.2016.08.019CrossRef

Anarfo, E. B., Abor, J. Y., & Osei, K. A. (2020). Financial regulation and financial inclusion in Sub-Saharan Africa: Does financial stability play a moderating role? Research in International Business and Finance, 51, 101070. https://doi.org/10.1016/j.ribaf.2019.101070CrossRef

Archambault, G. (2017). Metadata : Non-Indigenous access to improved sanitation in Latin America and the Caribbean. International Hydrological Programme - UNESCO. . Retrieved from http://ihp-wins.unesco.org/layers/geonode:lac_nonindigenous_access_to_sanitation2_1/metadata_detail.

Arun, T., & Kamath, R. (2015). Financial inclusion: Policies and practices. IIMB Management Review, 27(4), 267–287. https://doi.org/10.1016/j.iimb.2015.09.004CrossRef

Asongu, S. A., & Odhiambo, N. M. (2020). How enhancing gender inclusion affects inequality: Thresholds of complementary policies for sustainable development. Sustainable Development, 28(1), 132–142. https://doi.org/10.1002/sd.1977CrossRef

Baum, C. F., Schaffer, M. E., & Stillman, S. (2003). Instrumental variables and GMM: estimation and testing. The Stata Journal., 3(1), 1–31. https://doi.org/10.1177/1536867X0300300101.CrossRef

Bebczuk, R. N. (2008). Financial Inclusion in Latin America and the Caribbean: Review and Lessons. Retrieved from http://hdl.handle.net/10419/127584

Block, F. (2008). Swimming against the current: The rise of a hidden developmental state in the United States. Politics & Society, 36(2), 169–206. https://doi.org/10.1177/0032329208318731CrossRef

Block, F., & Evans, P. (2005). The State and the Economy. In The Handbook of Economic Sociology (2 ed.): Princeton University Press.

Bruhn, M., & Love, I. (2014). The real impact of improved access to finance: Evidence from Mexico. The Journal of Finance, 69(3), 1347–1376. https://doi.org/10.1111/jofi.12091CrossRef

Burgess, R., & Pande, R. (2005). Do rural banks matter? Evidence from the Indian social banking experiment. American Economic Review, 95(3), 780–795. https://doi.org/10.1257/0002828054201242CrossRef

Cabeza-García, L., Del Brio, E. B., & Oscanoa-Victorio, M. L. (2019). Female financial inclusion and its impacts on inclusive economic development. Women’s Studies International Forum, 77, 102300. https://doi.org/10.1016/j.wsif.2019.102300CrossRef

Campoli, J. S., Alves Júnior, P. N., Rossato, F. G. F., & d. S., & Rebelatto, D. A. d. N. . (2020). The efficiency of Bolsa Familia Program to advance toward the Millennium Development Goals (MDGs): A human development indicator to Brazil. Socio-Economic Planning Sciences, 71, 100748. https://doi.org/10.1016/j.seps.2019.100748CrossRef

Carballo, I. E. (2017). Financial inclusion in Latin America. In A. Farazmand (Ed.), Global encyclopedia of public administration, public policy, and governance (pp. 1–13). Springer International Publishing.

Cardoso, S. M., & Teixeira, A. A. C. (2020). The Focus on poverty in the most influential journals in economics: A bibliometric analysis of the “Blue Ribbon” journals. Poverty & Public Policy, 12(1), 10–42. https://doi.org/10.1002/pop4.269CrossRef

Correa, E., & Girón, A. (2019). Financial inclusion and financialization: Latin American main trends after the great crisis. Journal of Economic Issues, 53(2), 496–501. https://doi.org/10.1080/00213624.2019.1594544CrossRef

Datta, S. K., & Singh, K. (2019). Variation and determinants of financial inclusion and their association with human development: A cross-country analysis. IIMB Management Review, 31(4), 336–349. https://doi.org/10.1016/j.iimb.2019.07.013CrossRef

Demir, A., Pesqué-Cela, V., Altunbas, Y., & Murinde, V. (2020). Fintech, financial inclusion and income inequality: A quantile regression approach. The European Journal of Finance. https://doi.org/10.1080/1351847X.2020.1772335CrossRef

Demirgüç-Kunt, A., Beck, T., & Honohan, P. (2008). Finance for all? Policies and pitfalls in expanding access. World Bank.

Demirguc-Kunt, A., Klapper, L., & Singer, D. (2017). Financial Inclusion and Inclusive Growth : A Review of Recent Empirical Evidence. Policy Research Working Papers. http://hdl.handle.net/10986/26479

Diniz, E., Birochi, R., & Pozzebon, M. (2012). Triggers and barriers to financial inclusion: The use of ICT-based branchless banking in an Amazon county. Electronic Commerce Research and Applications, 11(5), 484–494. https://doi.org/10.1016/j.elerap.2011.07.006CrossRef

Donou-Adonsou, F., & Sylwester, K. (2016). Financial development and poverty reduction in developing countries: New evidence from banks and microfinance institutions. Review of Development Finance, 6(1), 82–90. https://doi.org/10.1016/j.rdf.2016.06.002CrossRef

Eldomiaty, T., Hammam, R., & El Bakry, R. (2020). Institutional determinants of financial inclusion: Evidence from world economies. International Journal of Development Issues, 19(2), 217–228. https://doi.org/10.1108/IJDI-08-2019-0147CrossRef

Fligstein, N. (1996). Markets as politics: A political-cultural approach to market institutions. American Sociological Review, 61(4), 656–673. https://doi.org/10.2307/2096398CrossRef

Fligstein, N., Stuart Brundage, J., & Schultz, M. (2017). Seeing like the fed: Culture, cognition, and framing in the failure to anticipate the financial crisis of 2008. American Sociological Review, 82(5), 879–909. https://doi.org/10.1177/0003122417728240CrossRef

Fouejieu, A., Sahay, R., Cihak, M., & Chen, S. (2020). Financial inclusion and inequality: A cross-country analysis. The Journal of International Trade & Economic Development. https://doi.org/10.1080/09638199.2020.1785532CrossRef

Gorton, G. B. (2009). Slapped in the face by the invisible hand: Banking and the panic of 2007. SSRN. https://doi.org/10.2139/ssrn.1401882CrossRef

Greene, W. H. (2002). Econometric analysis (5th ed.). Prentice Hall.

Grohmann, A., Klühs, T., & Menkhoff, L. (2018). Does financial literacy improve financial inclusion? Cross country evidence. World Development, 111, 84–96. https://doi.org/10.1016/j.worlddev.2018.06.020CrossRef

Gutiérrez-Nieto, B., Serrano-Cinca, C., Cuéllar-Fernández, B., & Fuertes-Callén, Y. (2017). The poverty penalty and microcredit. Social Indicators Research, 133(2), 455–475. https://doi.org/10.1007/s11205-016-1368-4CrossRef

Hermes, N. (2014). Does microfinance affect income inequality? Applied Economics, 46(9), 1021–1034. https://doi.org/10.1080/00036846.2013.864039CrossRef

Honohan, P. (2008). Cross-country variation in household access to financial services. Journal of Banking & Finance. https://doi.org/10.1016/j.jbankfin.2008.05.004.CrossRef

Iqbal, K., Roy, P. K., & Alam, S. (2020). The impact of banking services on poverty: Evidence from sub-district level for Bangladesh. Journal of Asian Economics, 66, 101154. https://doi.org/10.1016/j.asieco.2019.101154CrossRef

Kabakova, O., & Plaksenkov, E. (2018). Analysis of factors affecting financial inclusion: Ecosystem view. Journal of Business Research, 89, 198–205. https://doi.org/10.1016/j.jbusres.2018.01.066CrossRef

Kim, D.-W., Yu, J.-S., & Hassan, M. K. (2018). Financial inclusion and economic growth in OIC countries. Research in International Business and Finance, 43, 1–14. https://doi.org/10.1016/j.ribaf.2017.07.178CrossRef

Klapper, L., El-Zoghbi, M., & Hess, J. (2016). Achieving the sustainable development goals: The role of financial inclusion. Retrieved from https://www.cgap.org/sites/default/files/Working-Paper-Achieving-Sustainable-Development-Goals-Apr-2016_0.pdf.

Koomson, I., Villano, R. A., & Hadley, D. (2020). Effect of financial inclusion on poverty and vulnerability to poverty: Evidence using a multidimensional measure of financial inclusion. Social Indicators Research, 149(2), 613–639. https://doi.org/10.1007/s11205-019-02263-0CrossRef

Lacalle-Calderon, M., Larrú, J. M., Garrido, S. R., & Perez-Trujillo, M. (2019). Microfinance and income inequality: New macrolevel evidence. Review of Development Economics, 23(2), 860–876. https://doi.org/10.1111/rode.12573CrossRef

Lashitew, A. A., van Tulder, R., & Liasse, Y. (2019). Mobile phones for financial inclusion: What explains the diffusion of mobile money innovations? Research Policy, 48(5), 1201–1215. https://doi.org/10.1016/j.respol.2018.12.010CrossRef

Leon, F. (2015). Does bank competition alleviate credit constraints in developing countries? Journal of Banking & Finance, 57, 130–142. https://doi.org/10.1016/j.jbankfin.2015.04.005CrossRef

Lustig, N., Lopez-Calva, L. F., & Ortiz-Juarez, E. (2013). Declining inequality in Latin America in the 2000s: The cases of Argentina, Brazil, and Mexico. World Development, 44, 129–141. https://doi.org/10.1016/j.worlddev.2012.09.013CrossRef

MacKenzie, D. (2011). The credit crisis as a problem in the sociology of knowledge. American Journal of Sociology, 116(6), 1778–1841. https://doi.org/10.1086/659639CrossRef

Matos, P. R. F. (2017). On the Latin American credit drivers. Emerging Markets Finance and Trade, 53(2), 306–320. https://doi.org/10.1080/1540496X.2016.1210508CrossRef

Munyegera, G. K., & Matsumoto, T. (2016). Mobile money, remittances, and household welfare: Panel evidence from rural Uganda. World Development, 79, 127–137. https://doi.org/10.1016/j.worlddev.2015.11.006CrossRef

Mushtaq, R., & Bruneau, C. (2019). Microfinance, financial inclusion and ICT: Implications for poverty and inequality. Technology in Society, 59, 101154. https://doi.org/10.1016/j.techsoc.2019.101154CrossRef

Ndlovu, G., & Toerien, F. (2020). The distributional impact of access to finance on poverty: Evidence from selected countries in Sub-Saharan Africa. Research in International Business and Finance, 52, 101190. https://doi.org/10.1016/j.ribaf.2020.101190CrossRef

N’Dri, L. M., & Kakinaka, M. (2020). Financial inclusion, mobile money, and individual welfare: The case of Burkina Faso. Telecommunications Policy, 44(3), 101926. https://doi.org/10.1016/j.telpol.2020.101926CrossRef

Neaime, S., & Gaysset, I. (2018). Financial inclusion and stability in MENA: Evidence from poverty and inequality. Finance Research Letters, 24, 230–237. https://doi.org/10.1016/j.frl.2017.09.007CrossRef

Nissanke, M., & Thorbecke, E. (2010). Globalization, poverty, and inequality in Latin America: Findings from case studies. World Development, 38(6), 797–802. https://doi.org/10.1016/j.worlddev.2010.02.003CrossRef

Omar, M. A., & Inaba, K. (2020). Does financial inclusion reduce poverty and income inequality in developing countries? A panel data analysis. Journal of Economic Structures, 9(1), 37. https://doi.org/10.1186/s40008-020-00214-4CrossRef

Ouma, S. A., Odongo, T. M., & Were, M. (2017). Mobile financial services and financial inclusion: Is it a boon for savings mobilization? Review of Development Finance, 7(1), 29–35. https://doi.org/10.1016/j.rdf.2017.01.001CrossRef

Owen, A. L., & Pereira, J. M. (2018). Bank concentration, competition, and financial inclusion. Review of Development Finance, 8(1), 1–17. https://doi.org/10.1016/j.rdf.2018.05.001CrossRef

Ozili, P. K. (2018). Impact of digital finance on financial inclusion and stability. Borsa Istanbul Review, 18(4), 329–340. https://doi.org/10.1016/j.bir.2017.12.003CrossRef

Park, C.-Y., & Mercado, R. (2017). Financial inclusion, poverty, and income inequality. The Singapore Economic Review, 63(01), 185–206. https://doi.org/10.1142/S0217590818410059CrossRef

Parks, R. W. (1967). Efficient estimation of a system of regression equations when disturbances are both serially and contemporaneously correlated. Journal of the American Statistical Association, 62(318), 500–509. https://doi.org/10.2307/2283977CrossRef

Presbitero, A. F., & Rabellotti, R. (2016). The determinants of firm access to credit in Latin America: Micro characteristics and market structure. Economic Notes, 45(3), 445–472. https://doi.org/10.1111/ecno.12069CrossRef

Raichoudhury, A. (2020). Major determinants of financial inclusion: State-level evidences from India. Vision, 24(2), 151–159. https://doi.org/10.1177/0972262920923882CrossRef

Rojas-Suarez, L. (2016). Financial Inclusion in Latin America: Facts and Obstacles. https://doi.org/10.2139/ssrn.2860875CrossRef

Rojas-Suarez, L., & Amado, M. A. (2014). Understanding Latin America’s Financial Inclusion Gap - Working Paper 367. Retrieved from https://ideas.repec.org/p/cgd/wpaper/367.html

Schönerwald, C., & Vernengo, M. (2016). Microfinance, financial inclusion, and the rhetoric of reaction: The evolution and limitations of microfinance in Brazil. Latin American Policy, 7(2), 356–376. https://doi.org/10.1111/lamp.12101CrossRef

Senyo, P. K., & Osabutey, E. L. C. (2020). Unearthing antecedents to financial inclusion through FinTech innovations. Technovation, 98, 102155. https://doi.org/10.1016/j.technovation.2020.102155CrossRef

Swamy, V. (2014). Financial inclusion, gender dimension, and economic impact on poor households. World Development, 56, 1–15. https://doi.org/10.1016/j.worlddev.2013.10.019CrossRef

Tchamyou, V. S., Erreygers, G., & Cassimon, D. (2019). Inequality, ICT and financial access in Africa. Technological Forecasting and Social Change, 139, 169–184. https://doi.org/10.1016/j.techfore.2018.11.004CrossRef

UNCDF, U. C. D. F. (2014). INCLUSIVE FINANCE INCREASING ACCESS TO FINANCIAL SERVICES. Retrieved from https://www.uncdf.org/article/847/brochure-inclusive-finance

Vacaflores, D. E. (2018). Are remittances helping lower poverty and inequality levels in Latin America? The Quarterly Review of Economics and Finance, 68, 254–265. https://doi.org/10.1016/j.qref.2017.09.001CrossRef

Vo, D. H., Nguyen, N. T., & Van Thi-Hong, L. (2020). Financial inclusion and stability in the Asian region using bank-level data. Borsa Istanbul Review. https://doi.org/10.1016/j.bir.2020.06.003CrossRef

Volscho, T. W., & Kelly, N. J. (2012). The rise of the super-rich: Power resources, taxes, financial markets, and the dynamics of the top 1 percent, 1949 to 2008. American Sociological Review, 77(5), 679–699. https://doi.org/10.1177/0003122412458508CrossRef

von Fintel, D., & Orthofer, A. (2020). Wealth inequality and financial inclusion: Evidence from South African tax and survey records. Economic Modelling, 91, 568–578. https://doi.org/10.1016/j.econmod.2020.02.001CrossRef

Wójcik, D. (2020). Financial geography II: The impacts of FinTech – Financial sector and centres, regulation and stability, inclusion and governance. Progress in Human Geography. https://doi.org/10.1177/0309132520959825CrossRef

Wooldridge, J. M. (2010). Econometric analysis of cross section and panel data. The MIT Press.

World-Bank. (2020). World Bank Open Data. Retrieved from https://data.worldbank.org/

Titel: Does Financial Inclusion Diminish Poverty and Inequality? A Panel Data Analysis for Latin American Countries
verfasst von: Eduardo Polloni-Silva
Naijela da Costa
Herick Fernando Moralles
Mario Sacomano Neto
Publikationsdatum: 09.06.2021
Verlag: Springer Netherlands
Erschienen in: Social Indicators Research / Ausgabe 3/2021
Print ISSN: 0303-8300
Elektronische ISSN: 1573-0921
DOI: https://doi.org/10.1007/s11205-021-02730-7

Springer Professional

Abstract

Bitte loggen Sie sich ein, um Zugang zu Ihrer Lizenz zu erhalten.

Sie haben noch keine Lizenz? Dann Informieren Sie sich jetzt über unsere Produkte:

Springer Professional "Wirtschaft+Technik"

Springer Professional "Wirtschaft"

Weitere Artikel der Ausgabe 3/2021

Mobile Internet Use and Multidimensional Poverty: Evidence from A Household Survey in Rural China

Two Latent Groups Influencing Subjective Social Status: Middle Class Tendency and Clear Class Consciousness

The Impact of Social Capital on Household Well-being in Pakistan

A New Generalized Variance Approach for Measuring Multidimensional Inequality and Poverty

Correction to: A Poset‑Generalizability Method for Human Development Indicators

Sustainable Tourism as a Driving force of the Tourism Industry in a Post-Covid-19 Scenario