Digital financial inclusion - demand side vs. supply side approach

2021 ◽  
Vol 10 (3) ◽  
pp. 191
Author(s):  
Kalluru Siva Reddy ◽  
Ashutosh Upadhyay
Keyword(s):  
Financial Inclusion ◽  
Supply Side ◽  
Demand Side

Demand-side Factors for Financial Inclusion: A Cross-country Empirical Analysis

2019 ◽  
Vol 56 (2-3) ◽  
pp. 163-185 ◽  
Author(s):  
Rigzin Yangdol ◽  
Mandira Sarma
Keyword(s):  
Individual Characteristics ◽  
Financial Inclusion ◽  
Specific Factor ◽  
Supply Side ◽  
Demand Side ◽  
Explanatory Variables ◽  
Factors Associated ◽  
Per Capita ◽  
Cross Country ◽  
Country Specific

The importance of an inclusive financial system in the overall growth and economic development of a nation is well recognized. While most studies on financial inclusion use supply-side data, this article presents a demand-side analysis of factors associated with financial inclusion. Making use of a large cross-country data on financial inclusion status and individual characteristics of adult individuals, we econometrically establish that individual characteristics and economic circumstances play very significant role in determining financial inclusion of adult individuals, after taking into account other factors of the country. The article uses three indicators of financial inclusion and several explanatory variables such as country-specific factor (gross domestic product [GDP] per capita), individual characteristics and individual economic circumstances of adult individuals from different countries. We find that in general, being woman, less educated, jobless and poor are negatively associated with financial inclusion of individuals. Enhanced level of education and income, in general, enhances likelihood of financial inclusion. These findings should be taken into account while formulating policies towards promotion of financial inclusion.

scholarly journals INDEKS KETERANGKUMAN KEWANGAN DI NEGARA SEDANG MEMBANGUN MENGGUNAKAN KAEDAH BUKAN PARAMETRIK DAN PARAMETRIK

2020 ◽  
Vol 5 (1) ◽  
pp. 80-103
Author(s):  
Rosmah Nizam ◽  
Zulkefly Abd Karim ◽  
Aisyah Abdul Rahman ◽  
Tamat Sarmidi
Keyword(s):  
Developing Countries ◽  
Principle Component Analysis ◽  
Parametric Method ◽  
Financial Inclusion ◽  
Supply Side ◽  
Demand Side ◽  
Principle Component ◽  
Index Value ◽  
Financial Technology ◽  
Non Parametric

Tujuan dan Latarbelakang: Kajian ini bertujuan membuat penambahbaikan pengiraan indeks keterangkuman kewangan dengan mengambilkira dimensi teknologi kewangan digital (fintech) dan menggunakan data daripada sebelah penawaran (supply-side) dan permintaan (demand-side) yang melibatkan negara sedang membangun terpilih bagi tahun 2014 dan 2017 (68 buah negara).   Metodologi: Untuk mengukur indeks keterangkuman kewangan, kajian ini menggabungkan kaedah bukan-parametrik melalui model ukuran multidimensi dan kaedah parametrik Analisis Komponen Utama (PCA).   Dapatan: Keputusan empirik kajian dengan menggunakan analisis PCA mendapati bahawa indeks keterangkuman kewangan yang dikemukakan dengan penambahbaikan dimensi fintech mempunyai kepentingan relatif dan hubungan yang signifikan terhadap tahap keterangkuman kewangan. Kajian ini menunjukkan nilai indeks yang tinggi menggambarkan tahap keterangkuman kewangan yang baik dan inklusif, manakala nilai indeks yang rendah adalah sebaliknya.   Sumbangan: Implikasi daripada kajian ini menunjukkan kepentingan penggubal dasar untuk membentuk strategi dalam konteks keterangkuman kewangan di sesebuah negara. Selain itu, akses kepada perkhidmatan teknologi kewangan digital harus diperluaskan untuk meningkatkan tahap kewangan yang lebih inklusif dan mencapai keterangkuman kewangan sempurna.   Kata kunci: Analisis komponen utama (PCA), bukan parametrik, fintech, indeks keterangkuman kewangan, multidimensi, parametrik.   ABSTRACT Background and Purpose: This paper aims to improve the construction of the index of financial inclusion with digital financial technology (fintech) dimensions, using supply-side and demand-side data from selected developing countries for 2014 and 2017 (68 countries).   Methodology: To measure the index of financial inclusion, this study combines non-parametric methods through the multidimensional measurement model proposed by Mandira Sarma (2012) and the Principle Component Analysis (PCA) as a parametric method.   Findings: The empirical findings of the study using PCA analysis found that improvement on proposed index of financial inclusion using fintech dimensions has a relative importance and significant relationship to the level of financial inclusiveness.  This study shows that the higher index value reflecting the more inclusive of financial inclusion, while the lower index value is vice versa.   Contributions: This study concludes that it is important for policy makers to shape policies and strategies within the context of financial inclusion in a country. In addition, access to digital financial technology services should be expanded to increase the level of financial inclusiveness and achieve complete financial inclusion.   Keywords: Financial inclusion index, fintech, multidimensional, non-parametric, parametric, Principle Component Analysis (PCA).   Cite as: Nizam, R., Abd Karim, Z., Abdul Rahman, A., & Sarmidi, T. (2020). Indeks keterangkuman kewangan di negara sedang membangun menggunakan kaedah bukan parametrik dan parametric [Financial inclusion index in developing countries using non-parametric and parametric method]. Journal of Nusantara Studies, 5(1), 80-103. http://dx.doi.org/10.24200/jonus.vol5iss1pp80-103

What Constraints Financial Inclusion for the Transgender Community? Field-based Evidences from Odisha (India)

2020 ◽  
pp. 2455328X2092243
Author(s):  
Rajesh Barik ◽  
Pritee Sharma
Keyword(s):  
Financial Literacy ◽  
Financial Inclusion ◽  
Supply Side ◽  
Demand Side ◽  
Transgender People ◽  
Financial Exclusion ◽  
Bank Staff ◽  
The Status ◽  
The Government ◽  
Supply Side Factors

Among all the marginalized and stigmatized communities in Odisha, financial exclusion is high among the transgender community. This study discusses the status, importance and key challenges of financial inclusion among the transgender community of Odisha. This study tries to address the major constraints and challenges of financial inclusion among transgender community people in Odisha. To fulfil the above cited objective, in-depth interviews were conducted with 76 respondents. Additionally, the interviews were also taken from the transgender community’s president and secretary from two regions of Odisha (Cuttack and Bhubaneswar). This study points out that transgender people are deprived from accessing adequate financial products and services from the formal financial institutions. Both demand side and supply side factors are responsible for this exclusion. On the demand side, their low financial literacy and awareness, lack of proper documents to open a bank account, lack of individual interest and lack of formal employment are responsible. On the other hand, supply side factors involve unfriendly behaviour of bank staff and officers, less provision of legal documents from the government, less spread of information, less awareness programmes or financial literacy programmes among the transgender community of Odisha.

scholarly journals Financial Inclusion in Ethiopia

2017 ◽  
Vol 9 (4) ◽  
pp. 191 ◽  
Author(s):  
Andualem Ufo Baza ◽  
K. Sambasiva Rao
Keyword(s):  
Financial Institution ◽  
Financial Inclusion ◽  
Fixed Cost ◽  
Supply Side ◽  
Demand Side ◽  
Payment Instruments ◽  
The Status ◽  
Survey Instruments ◽  
Per Capita ◽  
Branch Density

This paper analyzes the demand and supply side data to show the status of financial inclusion in Ethiopia. Using a set of survey instruments on demand side and data on supply side of financial inclusion, we first analyzed the demand side survey on account, saving, credit, payment, insurance and financial resilience as well as barriers to financial inclusion. Then, we determined and analyzed the supply side of the financial inclusion such as trends in the number of deposit accounts and loan accounts, branch per capita, branch density, ATMs per capita and ATMs density and the retail payment instruments penetration. The analysis of supply side study covered the data for the period from 2006 to 2015. We find that in Ethiopia 33.86 percent of adults has an account at formal financial institution in the year 2016. They use their account to keep money safe, send and receive payments, and to get credit services and foreign exchange services. Using the data on the supply side of financial inclusion in Ethiopia as of December 2015, we find that the branch per capita and branch density of 5.54 and 3.09 respectively. We find that barriers to financial inclusion such as lack of money, distance, fixed cost, and documentations are important obstacles in Ethiopia.

scholarly journals Financial Inclusion and Its Influence on Economic-environmental Performance: Demand and Supply Perspectives

2021 ◽  
Author(s):  
Dong Liu ◽  
Yuying Zhang ◽  
Muhammad Hafeez ◽  
Sana ullah
Keyword(s):  
Economic Growth ◽  
Co2 Emissions ◽  
Positive Impact ◽  
Financial Inclusion ◽  
Supply Side ◽  
Demand Side ◽  
Demand And Supply ◽  
Economic Growth Model ◽  
The Impact

Abstract In this study, we want to test the impact of financial inclusion on the economic growth and the environmental quality of OBOR economies. We have selected four different proxies of financial inclusion, two from the perspective of the supply side and two from the perspective of the demand side. For empirical analysis, we have applied 2SLS and GMM methods. In the economic growth model, among the variables of financial inclusion, only the variable of ATMS is positively significant when we apply the 2SLS approach and all others are insignificant, however, when we apply the GMM approach two variables i.e. ATMS and branches are positively significant implying that supply-side financial inclusion is vital for economic growth in OBOR countries. On the other side, the variables of financial inclusion, whether supply-side or demand-side, exerted a positive impact on the CO2 emissions irrespective of the estimation techniques i.e. 2SLS and GMM. These findings imply that financial inclusion, in general, causes CO2 emissions to rise.

Financial inclusion matters for economic growth in India

2019 ◽  
Vol 46 (1) ◽  
pp. 132-151 ◽  
Author(s):  
Dinabandhu Sethi ◽  
Susanta Kumar Sethy
Keyword(s):  
Economic Growth ◽  
Financial Services ◽  
Financial Inclusion ◽  
Supply Side ◽  
Demand Side ◽  
Causality Test ◽  
Content Type ◽  
Nonlinear Ardl ◽  
Long Run ◽  
Ardl Approach

Purpose The purpose of this paper is to examine the relationship between financial inclusion (FI) and economic growth in India. Design/methodology/approach To measure FI, a multidimensional time-varying index is proposed following the Human Development Index method. The long-run relationship between FI and economic growth is examined by using the autoregressive distributed lag (ARDL) approach to cointegration and nonlinear ARDL approach. Further, the direction of causality is investigated by employing the Toda–Yamamoto Granger causality test. Findings The linear cointegration test confirms a long-run relationship between FI and economic growth for India. The improvement in both demand-side and supply-side financial services has a positive impact on economic growth. These results suggest that India can attain long-run economic growth by improving the coverage of FI. However, there is no evidence of nonlinear cointegration, indicating that there is no asymmetric effect of FI on economic growth. Further, the causality test shows that FI granger causes economic growth but not vice versa. Research limitations/implications The major limitation of the study is the availability of time series data for all important variables. The index for both demand- and supply-side indicators can be extended with several other important variables in later date once the data are available for those variables. Practical implications As the study confirms that FI is one of the main drivers of economic growth, it is suggested that the policy maker emphasizing on financial sector reforms can enjoy economic growth in the long run, especially in developing countries. Therefore, the government and policy makers need to address the issues involved in access to financial services to spur economic growth. Originality/value The study examines the long-run relationship between FI and economic growth employing ARDL bound testing approach and nonlinear ARDL approach, separately for demand-side and supply-side indicators. Further, the study uses the Toda–Yamamoto granger causality to find the direction of causal flow between FI and economic growth.

Application of a Tax to E-Commerce Deliveries in Barcelona

2021 ◽  
pp. 036119812110124
Author(s):  
Genís Majoral ◽  
Francesc Gasparín ◽  
Sergi Saurí
Keyword(s):  
Cost Benefit Analysis ◽  
Cost Benefit ◽  
Supply Side ◽  
Environmental Tax ◽  
Positive Outcomes ◽  
Demand Side ◽  
Benefit Analysis ◽  
Revenue Collection ◽  
Last Mile ◽  
The Impact

The number of e-commerce transactions is increasing worldwide. Deliveries of goods purchased online generate externalities throughout the whole supply chain and, particularly, the increasing concern about the last-mile distribution of goods. The escalating presence of vans in cities contributes to poor air quality, climate change, noise, and congestion. So far, the majority of solutions to address this issue are based on the supply side, such as electric vans, optimizing the routing and pick-up-points, and so forth. Even in other transport sectors, pricing solutions are well known, yet they have not been extended to e-commerce delivery. This paper aims to propose an environmental tax falling on the demand side and equaling the externalities from this activity. The analysis has been particularized for the case of Barcelona. A cost–benefit analysis to assess the impact of such a tax has been carried out. When revenue collection is reinvested in the logistics sector, and for subsidizing electric distribution vehicles, the results indicate that the levying of the tax can generate positive outcomes.

scholarly journals The position of the farm holiday in Austrian tourism

2019 ◽  
Vol 4 (1) ◽  
pp. 697-711 ◽  
Author(s):  
Erika Quendler
Keyword(s):  
Empirical Research ◽  
Relative Position ◽  
Secondary Data ◽  
Point Of View ◽  
Local Context ◽  
Supply Side ◽  
Data Sets ◽  
Demand Side ◽  
Tourist Destinations ◽  
Tourist Accommodation

AbstractTourism is vitally important to the Austrian economy. The number of tourist destinations, both farms and other forms of accommodation, in the different regions of Austria is considerably and constantly changing. This paper discusses the position of the ‘farm holiday’ compared to other forms of tourism. Understanding the resilience of farm holidays is especially important but empirical research on this matter remains limited. The term ‘farm holiday’ covers staying overnight on a farm that is actively engaged in agriculture and has a maximum of 10 guest beds. The results reported in this paper are based on an analysis of secondary data from 2000 and 2018 by looking at two types of indicator: (i) accommodation capacity (supply side) and (ii) attractiveness of a destination (demand side). The data sets cover Austria and its NUTS3 regions. The results show the evolution of farm holidays vis-à-vis other forms of tourist accommodation. In the form of a quadrant matrix they also show the relative position of farm holidays regionally. While putting into question the resilience of farm holidays, the data also reveals where farm holidays could act to expand this niche or learn and improve to effect a shift in their respective position relative to the market ‘leaders’. However, there is clearly a need to learn more about farm holidays within the local context. This paper contributes to our knowledge of farm holidays from a regional point of view and tries to elaborate on the need for further research.

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