Does financial inclusion reduce poverty and income inequality in developing countries?

Furthermore, the results provide robust evidence that financial inclusion significantly reduces poverty rates and income inequality in developing countries.

Does financial inclusion reduce poverty and income inequality in developing countries a panel data analysis?

Our results show robust evidence that economies with higher financial inclusion significantly reduce poverty rates and income inequality in developing countries.

How does financial inclusion help in economic development?

The increase of financial inclusion is aimed to create capital accumulation which in turn increases economic growth. The financial inclusion through credit amount can increase investment in activities with high added value, thereby increasing economic growth through the country’s output (Febya, 2011).

What are the benefits of financial inclusion?

Universal access to digital financial systems. Safe and secure transactions that let consumers and businesses operate with confidence. Affordable participation in the economy for all (making and accepting payments, getting loans, saving for future goals, helping the community, and more)

How financial inclusion can help reduce poverty and bring growth?

For the direct channels, financial inclusion helps in reducing poverty through broadening access to credit, insurance, enhancing entrepreneurial possibilities through access to credit which eventually raises income and consumption of individuals, and strengthening productive assets for the marginalized through …

How does financial inclusion alleviate poverty?

The results suggest that financial inclusion only helps to lower poverty and income inequality when overall economic conditions empower people to use access to finance for productive purposes such as expanding a business or investing in children’s education.

Does financial inclusion reduce poverty?

The results show that financial inclusion plays an important role in reducing poverty. The study provides a number of recommendations to governments to promote financial inclusions and reduce poverty in the countries.

Does financial inclusion diminish poverty and inequality a panel data analysis for Latin American countries?

Our results indicate that financial inclusion is a powerful tool to reduce poverty and inequality in Latin America, therefore benefiting the overall human development aspect of the region.

What is the role of financial inclusion?

Financial inclusion intends to help people secure financial services and products at economical prices such as deposits, fund transfer services, loans, insurance, payment services, etc. It aims to establish proper financial institutions to cater to the needs of the poor people.

How does financial inclusion reduce poverty?

How do financial system help the poor to get out of poverty?

More financial development reduces poverty by easing credit constraints on the poor, reduces income inequality, and improves the allocation of capital.