Financial inclusion and macroeconomic stability in emerging and frontier markets
| dc.contributor.author | Vo, Anh The | |
| dc.contributor.author | Van, Loan Thi-Hong | |
| dc.contributor.author | Vo, Duc Hong | |
| dc.contributor.author | McAleer, Michael | |
| dc.date.accessioned | 2023-06-17T17:54:01Z | |
| dc.date.available | 2023-06-17T17:54:01Z | |
| dc.date.issued | 2019 | |
| dc.description.abstract | Financial inclusion, being considered as a key enabler to reducing poverty and boosting prosperity in emerging and frontier markets such as Vietnam, is the process in which individuals and small businesses are provided with an access to useful and affordable financial products and services. The extant literature on the empirical evidence regarding the contribution of financial inclusion to macroeconomic stability is mixed. This paper investigates the linkages between financial inclusion and macroeconomic stability, which has not yet been thoroughly examined in the literature, for 22 emerging and frontier economies from 2008 to 2015, with particular focus on a potential optimal level. Using the panel threshold estimation technique, the empirical findings show that financial inclusion, as approximated by the growth rate in the number of bank branches over 100,000 account holders, is found to enhance financial stability under a certain threshold. Financial inclusion is also found to be of benefit to maintaining stable inflation and output growth. Policy implications are also discussed on the basis of the important empirical findings. | |
| dc.description.faculty | Fac. de Ciencias Económicas y Empresariales | |
| dc.description.faculty | Instituto Complutense de Análisis Económico (ICAE) | |
| dc.description.refereed | TRUE | |
| dc.description.status | pub | |
| dc.eprint.id | https://eprints.ucm.es/id/eprint/54660 | |
| dc.identifier.issn | 2341-2356 | |
| dc.identifier.relatedurl | https://www.ucm.es/icae | |
| dc.identifier.uri | https://hdl.handle.net/20.500.14352/17455 | |
| dc.issue.number | 01 | |
| dc.language.iso | eng | |
| dc.page.total | 23 | |
| dc.publisher | Facultad de CC Económicas y Empresariales. Instituto Complutense de Análisis Económico (ICAE) | |
| dc.relation.ispartofseries | Documentos de trabajo del Instituto Complutense de Análisis Económico (ICAE) | |
| dc.rights | Atribución-NoComercial-CompartirIgual 3.0 España | |
| dc.rights.accessRights | open access | |
| dc.rights.uri | https://creativecommons.org/licenses/by-nc-sa/3.0/es/ | |
| dc.subject.jel | C62 | |
| dc.subject.jel | F65 | |
| dc.subject.jel | O16 | |
| dc.subject.jel | P45 | |
| dc.subject.keyword | Financial inclusion | |
| dc.subject.keyword | Macroeconomic stability | |
| dc.subject.keyword | Panel threshold | |
| dc.subject.keyword | Emerging and frontier markets. | |
| dc.subject.ucm | Análisis matemático | |
| dc.subject.ucm | Economía internacional | |
| dc.subject.ucm | Mercados bursátiles y financieros | |
| dc.subject.unesco | 1202 Análisis y Análisis Funcional | |
| dc.subject.unesco | 5310 Economía Internacional | |
| dc.title | Financial inclusion and macroeconomic stability in emerging and frontier markets | |
| dc.type | technical report | |
| dc.volume.number | 2019 | |
| dcterms.references | Ahamed, MM and SK Mallick (2017). Is financial inclusion good for bank stability? International evidence. Journal of Economic Behavior and Organization. Bruhn, M, I Love (2014). The real impact of improved access to finance: Evidence from Mexico. The Journal of Finance, 69(3), 1347-1376. Camara, N and D Tuesta (2014). Measuring financial inclusion: A muldimensional index. Cihak, M, DS Mare and M Melecky (2016). The nexus of financial inclusion and financial stability: A study of trade-offs and synergies. Creel, J, P Hubert and F Labondance (2015). Financial stability and economic performance. Economic Modelling, 48, 25-40. En, F, A Demirguc-Kunt, L Klapper and MS Peria (2012). The foundations of financial inclusion: Understanding ownership and use of formal accounts. Fernández, AI, F Gonzalez and N Suarez (2016). Banking stability, competition, and economic volatility. Journal of Financial Stability, 22, 101-120. Fungacova, Z and L Weill (2014). A view on financial inclusion in Asian countries. Fouejieu, A (2017). Inflation targeting and financial stability in emerging markets. Economic Modelling, 60, 51-70. Garcia, MJR (2016). Can financial inclusion and financial stability go hand in hand? Economic Issues, 21(2), 81-103. Ghosh, AR, JD Ostry and MS Qureshi (2014). Exchange rate management and crisis susceptibility: A reassessment. IMF working paper No 14/11. Han, R and M Melecky (2013). Financial inclusion for financial stability: Access to bank deposits and the growth of deposits in the global financial crisis. Hannig, A and S Jansen (2010). Financial inclusion and financial stability: Current policy issues. Hansen, BE (1999). Threshold effects in non-dynamic panels: Estimation, testing, and inference. Journal of Econometrics, 93(2), 345-368. Khan, H. R. (2011). Financial inclusion and financial stability: are they two sides of the same coin? Address by Shri HR Khan, Deputy Governor of the Reserve Bank of India, at BANCON 2011, organized by the Indian Bankers Association and Indian Overseas Bank, Chennai, 4 November 2011. Kim, DW, JS Yu and MK Hassan (2018). Financial inclusion and economic growth in OIC countries. Research in International Business and Finance, 43, 1-14. Kim, JH (2016). A study on the effect of financial inclusion on the relationship between income inequality and economic growth. Emerging Markets Finance and Trade, 52(2), 498–512. Klapper, L, M El-Zoghbi and J Hess (2016). Achieving the sustainable development goals - The role of financial inclusion. Lopez, T and A Winkler (2018). The challenge of rural financial inclusion–evidence from microfinance. Applied Economics, 50(14), 1555-1577. Mehrotra, A and J Yetman (2015). Financial inclusion-issues for central banks. BIS Quarterly Review. Mehrotra, A and J Yetman (2014). Financial inclusion and optimal monetary policy. BIS Working Paper, No. 476. Mialou, A, G Amidzic and A Massara (2017). Assessing countries’ financial inclusion standing—A new composite index. Journal of Banking and Financial Economics, 8(2), 105-126. Morgan, P and V Pontines (2018). Financial stability and financial inclusion: The case of SME lending. The Singapore Economic Review, 63(1), 111-124. Morgan, PJ and Y Zhang (2017). Mortgage lending, banking crises, and financial stability in Asia and Europe. Asia Europe Journal, 15(4), 463-482. Neaime, S and I Gaysset (2017). Financial inclusion and stability in MENA: Evidence from poverty and inequality. Finance Research Letters, 24, 230-237. Park, CY and RV Mercado (2015). Financial inclusion, poverty, income inequality in developing Asia. Asian Development Bank Economics Working Paper No. 426. Manila: Asian Development Bank. Rogoff, R, A Husain, AMody, R Brooks, N Oomes (2004). Evolution and performance of exchange rate regimes. IMF Occasional Working Paper, No. 229. Sahay, R, M Cihak, P N’Diaye, A Barajas, S Mitra, A Kyobe, SR Yousefi (2015). Financial inclusion: can it meet multiple macroeconomic goals? Swamy, V (2014). Financial inclusion, gender dimension, and economic impact on poor households. World Development, 56, 1-15. Turegano, DM and AG Herrero (2018). Financial inclusion, rather than size, is the key to tackling income inequality. The Singapore Economic Review, 63(1), 167–184. Zhang, Q and A Posso (2017). Thinking inside the Box: A closer look at financial inclusion and household income. Journal of Development Studies, 1-16. | |
| dspace.entity.type | Publication |
Download
Original bundle
1 - 1 of 1
