The linkage between globalisation and financial inclusion: Do inequality and institutions matter?
This paper examines the effect of the globalization threshold on financial inclusion in 40 selected countries during 2000-2018. A principal component analysis (PCA) and a static panel threshold (SPT) are utilized. There are three dimensions and one aggregation of financial inclusion indicators asse...
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| Format: | Article |
| Language: | English |
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Universitas Islam Indonesia
2020-10-01
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| Series: | Economic Journal of Emerging Markets |
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| Online Access: | http://journal.uii.ac.id/JEP/article/view/16432 |
| _version_ | 1818009126890897408 |
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| author | Malik Cahyadin |
| author_facet | Malik Cahyadin |
| author_sort | Malik Cahyadin |
| collection | DOAJ |
| description |
This paper examines the effect of the globalization threshold on financial inclusion in 40 selected countries during 2000-2018. A principal component analysis (PCA) and a static panel threshold (SPT) are utilized. There are three dimensions and one aggregation of financial inclusion indicators assessed by PCA, while the globalization threshold is estimated under static panel threshold regression. Findings/Originality: The findings exhibit six countries with strong financial inclusion and eight countries with weak financial inclusion during study periods. Furthermore, the threshold effect of globalization has a significant impact on the financial inclusion index. The robustness checking employs panel cointegration test exhibits that inequality and some institutions indicators have a significant impact on financial inclusion both in the short-run and long-run. The policy implication suggests that governments should increase the financial inclusion index level during the globalization period, decrease inequality, and improve institutions' quality.
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| first_indexed | 2024-04-14T05:38:07Z |
| format | Article |
| id | doaj.art-0c53e6e1a1da493ca7d68df0fdd31137 |
| institution | Directory Open Access Journal |
| issn | 2086-3128 2502-180X |
| language | English |
| last_indexed | 2024-04-14T05:38:07Z |
| publishDate | 2020-10-01 |
| publisher | Universitas Islam Indonesia |
| record_format | Article |
| series | Economic Journal of Emerging Markets |
| spelling | doaj.art-0c53e6e1a1da493ca7d68df0fdd311372022-12-22T02:09:33ZengUniversitas Islam IndonesiaEconomic Journal of Emerging Markets2086-31282502-180X2020-10-0112210.20885/ejem.vol12.iss2.art810013The linkage between globalisation and financial inclusion: Do inequality and institutions matter?Malik Cahyadin0Faculty of Economics and Business, Universitas Sebelas Maret, Surakarta, Indonesia This paper examines the effect of the globalization threshold on financial inclusion in 40 selected countries during 2000-2018. A principal component analysis (PCA) and a static panel threshold (SPT) are utilized. There are three dimensions and one aggregation of financial inclusion indicators assessed by PCA, while the globalization threshold is estimated under static panel threshold regression. Findings/Originality: The findings exhibit six countries with strong financial inclusion and eight countries with weak financial inclusion during study periods. Furthermore, the threshold effect of globalization has a significant impact on the financial inclusion index. The robustness checking employs panel cointegration test exhibits that inequality and some institutions indicators have a significant impact on financial inclusion both in the short-run and long-run. The policy implication suggests that governments should increase the financial inclusion index level during the globalization period, decrease inequality, and improve institutions' quality. http://journal.uii.ac.id/JEP/article/view/16432Financial inclusionGlobalisationIncome inequalityInstitutionsThreshold effect |
| spellingShingle | Malik Cahyadin The linkage between globalisation and financial inclusion: Do inequality and institutions matter? Economic Journal of Emerging Markets Financial inclusion Globalisation Income inequality Institutions Threshold effect |
| title | The linkage between globalisation and financial inclusion: Do inequality and institutions matter? |
| title_full | The linkage between globalisation and financial inclusion: Do inequality and institutions matter? |
| title_fullStr | The linkage between globalisation and financial inclusion: Do inequality and institutions matter? |
| title_full_unstemmed | The linkage between globalisation and financial inclusion: Do inequality and institutions matter? |
| title_short | The linkage between globalisation and financial inclusion: Do inequality and institutions matter? |
| title_sort | linkage between globalisation and financial inclusion do inequality and institutions matter |
| topic | Financial inclusion Globalisation Income inequality Institutions Threshold effect |
| url | http://journal.uii.ac.id/JEP/article/view/16432 |
| work_keys_str_mv | AT malikcahyadin thelinkagebetweenglobalisationandfinancialinclusiondoinequalityandinstitutionsmatter AT malikcahyadin linkagebetweenglobalisationandfinancialinclusiondoinequalityandinstitutionsmatter |