Redirigiendo al acceso original de articulo en 19 segundos...

The Impact of Financial Inclusion on Unemployment Rate in Developing Countries

El-Bourainy Mehry    
Salah Ashraf    
ElSherif Marwa    


Financial inclusion has become the focus of economic policymaking worldwide. Increasing the accessibility of the weaker group of the society to formal financial services would not only serve at the individual level but will also benefit at the national level. This study aims to initially construct a new financial inclusion index for 43 developing countries based on a multidimensional approach, using Principal Component Analysis (PCA), using three dimensions; access to, usage of, and quality of financial services. Secondly, a dynamic two-step system, Generalized Method of Moments (GMM), is applied to empirically assess the impact of financial inclusion on the unemployment rate of 35 developing countries for the sample period from 2009 to 2018. The study established that financial inclusion has an impact on decreasing the unemployment rate in developing countries. The empirical findings suggest that an increase in the level of financial inclusion in developing countries decreases their unemployment rate. Moreover, the level of education, inflation rate, and economic growth have a significant negative impact on the unemployment rate. On the other hand, panel Granger Causality test was employed and indicated that there is a bi-directional causality between financial inclusion and unemployment rate.Keywords: Financial inclusion, developing countries, unemployment rate, PCA, system GMM, Granger Causaliy test.JEL Classifications: C33, E24, O11, O16DOI:

 Artículos similares

Ionu? Nica, Camelia Delcea, Nora Chiri?a and ?tefan Ionescu    
This study describes a comprehensive bibliometric analysis of shadow banking and financial contagion dynamics from 1996 to 2022. Through a holistic approach, our study focuses on quantifying the impact and uncovering significant trends in scientific rese... ver más

Enkeleda Lulaj, Blerta Dragusha, Eglantina Hysa and Marian Catalin Voica    
This research investigates the synergistic relationship between sustainability and financial prosperity in businesses, specifically focusing on the impact of consumers on profit growth in Kosovo and Albania. The study aims to understand consumers? percep... ver más

Chiou-Yann Lee, Chun-Ru Wen and Binh Thi-Thanh-Nguyen    
This study presents a novel financial performance forecasting method that combines the threshold technique with Artificial Neural Networks (ANN). It applies the threshold regression method to identify the factors within the board of directors that influe... ver más

Tchai Tavor    
This research investigates the burgeoning peer-to-peer (P2P) economy, exemplified by platforms such as Airbnb, and its implications within the North American context. The study focuses on understanding the repercussions of Airbnb announcements on capital... ver más

Carla Oliveira Henriques, Maria Elisabete Neves and João Jorge Couceiro    
This paper examines the efficiency of alternative energy equity Exchange-Traded Funds (ETFs) and conventional energy equity ETFs from 2018 to 2020, utilizing a combination of an output-oriented Slack-Based Data Envelopment Analysis (DEA) model and cluste... ver más