Examining the relationship between digital finance and financial inclusion: Evidence from MENA countries
Although financial inclusion (FI) has attracted growing attention from academics and policy makers, the effect of digital finance (DF) on FI has not been studied sufficiently. Therefore, this study examines the association between DF and FI in the Middle East and North Africa (MENA) region. FI is me...
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| Format: | Article |
| Language: | English |
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Elsevier
2023-03-01
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| Series: | Borsa Istanbul Review |
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| Online Access: | http://www.sciencedirect.com/science/article/pii/S2214845022001181 |
| _version_ | 1797857693410525184 |
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| author | Mohammad O. Al-Smadi |
| author_facet | Mohammad O. Al-Smadi |
| author_sort | Mohammad O. Al-Smadi |
| collection | DOAJ |
| description | Although financial inclusion (FI) has attracted growing attention from academics and policy makers, the effect of digital finance (DF) on FI has not been studied sufficiently. Therefore, this study examines the association between DF and FI in the Middle East and North Africa (MENA) region. FI is measured with a composite index incorporating three subindexes: access, availability, and usage of financial services; DF is measured by the number of ATMs per 100,000 adults. A system–generalized method of moments (sys-GMM) panel method is employed with annual data on 12 countries in the MENA region over the period 2004–2020. Additionally, five control variables are used in the study. The results confirm the role of DF in enhancing FI in the MENA countries. Policy makers and digital financial service providers in MENA countries can use the study's findings to expand the boundaries of FI in their countries. |
| first_indexed | 2024-04-09T21:00:56Z |
| format | Article |
| id | doaj.art-85f4c816c91b4085b2ea8d8309016d9b |
| institution | Directory Open Access Journal |
| issn | 2214-8450 |
| language | English |
| last_indexed | 2024-04-09T21:00:56Z |
| publishDate | 2023-03-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Borsa Istanbul Review |
| spelling | doaj.art-85f4c816c91b4085b2ea8d8309016d9b2023-03-29T09:27:04ZengElsevierBorsa Istanbul Review2214-84502023-03-01232464472Examining the relationship between digital finance and financial inclusion: Evidence from MENA countriesMohammad O. Al-Smadi0Faculty of Business, Philadelphia University, Amman, JordanAlthough financial inclusion (FI) has attracted growing attention from academics and policy makers, the effect of digital finance (DF) on FI has not been studied sufficiently. Therefore, this study examines the association between DF and FI in the Middle East and North Africa (MENA) region. FI is measured with a composite index incorporating three subindexes: access, availability, and usage of financial services; DF is measured by the number of ATMs per 100,000 adults. A system–generalized method of moments (sys-GMM) panel method is employed with annual data on 12 countries in the MENA region over the period 2004–2020. Additionally, five control variables are used in the study. The results confirm the role of DF in enhancing FI in the MENA countries. Policy makers and digital financial service providers in MENA countries can use the study's findings to expand the boundaries of FI in their countries.http://www.sciencedirect.com/science/article/pii/S2214845022001181G21G28G31 |
| spellingShingle | Mohammad O. Al-Smadi Examining the relationship between digital finance and financial inclusion: Evidence from MENA countries Borsa Istanbul Review G21 G28 G31 |
| title | Examining the relationship between digital finance and financial inclusion: Evidence from MENA countries |
| title_full | Examining the relationship between digital finance and financial inclusion: Evidence from MENA countries |
| title_fullStr | Examining the relationship between digital finance and financial inclusion: Evidence from MENA countries |
| title_full_unstemmed | Examining the relationship between digital finance and financial inclusion: Evidence from MENA countries |
| title_short | Examining the relationship between digital finance and financial inclusion: Evidence from MENA countries |
| title_sort | examining the relationship between digital finance and financial inclusion evidence from mena countries |
| topic | G21 G28 G31 |
| url | http://www.sciencedirect.com/science/article/pii/S2214845022001181 |
| work_keys_str_mv | AT mohammadoalsmadi examiningtherelationshipbetweendigitalfinanceandfinancialinclusionevidencefrommenacountries |