Determinants of Financial Inclusion - An Empirical Evidence from Southeastern Europe

Hina Affandi, Qaisar Ali Malik
2018 Asia Proceedings of Social Sciences  
Financial Inclusion lays an important role in developing and expanding financial markets. In the last decade, Balkan economies seem to have incensed to progress the deliberation of the financial inclusion and integrate the international financial market into their home financial system and subsequently achieve more escalation economically. Unfortunately, there has been observed small attention specified to the acceptance of recognized financial inclusion, particularly, how the shadow economy
more » ... financial outreach influence the financial inclusion. The present study checks and measures the strength and degree of control that shadow economy generate on financial inclusion on the one side, and on the other side it also process, approximate and investigate empirically that how the financial outreach affects financial inclusion in the six selected economies for the purpose of this study. To accomplish the objectives of the study time frame of 2006-2017 was taken for data compilation and investigation. Asymmetrical co-integration approach is used, which commence non-linearity in the measurement of model. The contemporary nonlinear approach co-integration (i.e., NARDL) is used. The results of the study advocate that for Balkan countries it is vastly noteworthy to handle and organize the concerns of financial inclusion flanking the shadow economy size connected challenges. It entail wide-ranging review of existing and potential modification programs that may create accurate use and allotment of financial services products. It may escort to income equality and poverty alleviation. Furthermore the strategy formulation agencies in these economies need to stamp out hindrance to such financial inclusion through quality convenience of financial services products in a satisfactory way. This will convey into stream those underprivileged and economically mislaid firms and households which were earlier someway incapable to donate in the economic improvement. This inclusion as a result will enhance expansion of financial markets and economy leading to in general development of such economies.
doi:10.31580/apss.v2i3.323 fatcat:dwsuft2sondmdeowuqpoo3oyhy