Building a financial inclusion index and analyzing its impact on unemployment
Financial inclusion has garnered attention from policymakers globally due to its potential to spur economic growth, alleviate poverty, and decrease unemployment. This study focuses on estimating the financial inclusion index across ten Southeast Asian countries utilizing principal component analysi...
| Main Authors: | , , , , , |
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| Format: | Article |
| Language: | English |
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Master Program in Economics, Graduate Program of Universitas Jambi
2023-12-01
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| Series: | Jurnal Perspektif Pembiayaan dan Pembangunan Daerah |
| Subjects: | |
| Online Access: | https://online-journal.unja.ac.id/JES/article/view/27269 |
| _version_ | 1797311777610924032 |
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| author | Yollit Pertama Sari Isra Yeni Dewi Pebriyani Urmatul Uska Akbar Hari Setia Putra Dwi Rani Puspa Artha |
| author_facet | Yollit Pertama Sari Isra Yeni Dewi Pebriyani Urmatul Uska Akbar Hari Setia Putra Dwi Rani Puspa Artha |
| author_sort | Yollit Pertama Sari |
| collection | DOAJ |
| description |
Financial inclusion has garnered attention from policymakers globally due to its potential to spur economic growth, alleviate poverty, and decrease unemployment. This study focuses on estimating the financial inclusion index across ten Southeast Asian countries utilizing principal component analysis. The objective is to identify the most representative index capable of accurately reflecting the financial inclusion indicators specific to each country. Additionally, the research seeks to explore the impact of financial inclusion on the unemployment rate. Data spanning from 2011 to 2021 were sourced from the World Bank. By employing panel regression estimation, the study reveals that digital financial inclusion does not significantly influence the unemployment rate, as indicated by a significance value of 0.118. Furthermore, a similar lack of impact was observed concerning GDP. Conversely, the inflation rate and education level variables affected the unemployment rate significantly, with significance values of 0.028 and 0.021, respectively. These empirical results suggest that policymakers should implement strategies to enhance financial inclusion, such as reducing the costs associated with financial services, offering incentives to the informal sector, and promoting education on the significance of financial instruments and institutions.
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| first_indexed | 2024-03-08T02:04:41Z |
| format | Article |
| id | doaj.art-466a80e8c02d4717bea0475b1bc1fd1e |
| institution | Directory Open Access Journal |
| issn | 2338-4603 2355-8520 |
| language | English |
| last_indexed | 2024-03-08T02:04:41Z |
| publishDate | 2023-12-01 |
| publisher | Master Program in Economics, Graduate Program of Universitas Jambi |
| record_format | Article |
| series | Jurnal Perspektif Pembiayaan dan Pembangunan Daerah |
| spelling | doaj.art-466a80e8c02d4717bea0475b1bc1fd1e2024-02-13T17:25:45ZengMaster Program in Economics, Graduate Program of Universitas JambiJurnal Perspektif Pembiayaan dan Pembangunan Daerah2338-46032355-85202023-12-0111510.22437/ppd.v11i5.27269Building a financial inclusion index and analyzing its impact on unemploymentYollit Pertama Sari0Isra Yeni1Dewi Pebriyani2Urmatul Uska Akbar3Hari Setia Putra4Dwi Rani Puspa Artha5Development Economics Study Program, Faculty of Economics, Universitas Negeri Padang, IndonesiaDevelopment Economics Study Program, Faculty of Economics, Universitas Negeri Padang, IndonesiaDevelopment Economics Study Program, Faculty of Economics, Universitas Negeri Padang, IndonesiaDevelopment Economics Study Program, Faculty of Economics, Universitas Negeri Padang, IndonesiaDevelopment Economics Study Program, Faculty of Economics, Universitas Negeri Padang, IndonesiaDevelopment Economics Study Program, Faculty of Economics, Universitas Negeri Padang, Indonesia Financial inclusion has garnered attention from policymakers globally due to its potential to spur economic growth, alleviate poverty, and decrease unemployment. This study focuses on estimating the financial inclusion index across ten Southeast Asian countries utilizing principal component analysis. The objective is to identify the most representative index capable of accurately reflecting the financial inclusion indicators specific to each country. Additionally, the research seeks to explore the impact of financial inclusion on the unemployment rate. Data spanning from 2011 to 2021 were sourced from the World Bank. By employing panel regression estimation, the study reveals that digital financial inclusion does not significantly influence the unemployment rate, as indicated by a significance value of 0.118. Furthermore, a similar lack of impact was observed concerning GDP. Conversely, the inflation rate and education level variables affected the unemployment rate significantly, with significance values of 0.028 and 0.021, respectively. These empirical results suggest that policymakers should implement strategies to enhance financial inclusion, such as reducing the costs associated with financial services, offering incentives to the informal sector, and promoting education on the significance of financial instruments and institutions. https://online-journal.unja.ac.id/JES/article/view/27269Financial inclusionPrinciple component analysisUnemployment |
| spellingShingle | Yollit Pertama Sari Isra Yeni Dewi Pebriyani Urmatul Uska Akbar Hari Setia Putra Dwi Rani Puspa Artha Building a financial inclusion index and analyzing its impact on unemployment Jurnal Perspektif Pembiayaan dan Pembangunan Daerah Financial inclusion Principle component analysis Unemployment |
| title | Building a financial inclusion index and analyzing its impact on unemployment |
| title_full | Building a financial inclusion index and analyzing its impact on unemployment |
| title_fullStr | Building a financial inclusion index and analyzing its impact on unemployment |
| title_full_unstemmed | Building a financial inclusion index and analyzing its impact on unemployment |
| title_short | Building a financial inclusion index and analyzing its impact on unemployment |
| title_sort | building a financial inclusion index and analyzing its impact on unemployment |
| topic | Financial inclusion Principle component analysis Unemployment |
| url | https://online-journal.unja.ac.id/JES/article/view/27269 |
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