Female Financial Inclusion and Its Impacts on Inclusive Economic Development – Women’s Studies International Forum – article

Female Financial Inclusion and Its Impacts on Inclusive Economic Development

Laura Cabeza-García, Esther B. Del Brio, Mery Luz Oscanoa-Victorio | Women’s Studies International Forum

2019-11-01

This paper investigates the effects of female financial inclusion on inclusive economic development. Financial inclusion, understood as the access to and usage of a diverse range of quality financial products and services, can have a positive effect on the reduction of income inequality. Specifically, when women participate in the financial system, the inequality gap decreases, enabling higher economic development, which also increases both physical and social wellbeing. An instrumental variable analysis is conducted on a sample of 91 countries, comprising both developed and emerging countries, using data from the Global Findex (2015) database and the World Bank DataBank. Our results effectively provide evidence attesting to the fact that greater financial inclusion of women, measured as access to a bank account and access to credit cards, has a positive effect on economic development. However, bank loans did not show any significance when explaining economic development.

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