The asymmetric effects of institutional quality on financial inclusion in the Asia-pacific region
Financial inclusions are generally considered an effective mechanism to support sustainable economic growth in emerging markets. While the symmetric effects of institutional quality on financial inclusion have been widely investigated, their asymmetric effects have largely been ignored in existing l...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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Elsevier
2022-12-01
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| Series: | Heliyon |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S2405844022033047 |
| _version_ | 1828071305071558656 |
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| author | Loan Thi-Hong Van Nhan Thien Nguyen Hung Le-Phuc Nguyen Duc Hong Vo |
| author_facet | Loan Thi-Hong Van Nhan Thien Nguyen Hung Le-Phuc Nguyen Duc Hong Vo |
| author_sort | Loan Thi-Hong Van |
| collection | DOAJ |
| description | Financial inclusions are generally considered an effective mechanism to support sustainable economic growth in emerging markets. While the symmetric effects of institutional quality on financial inclusion have been widely investigated, their asymmetric effects have largely been ignored in existing literature, particularly for emerging markets. In this paper, we estimate the index of financial inclusion for 19 countries in the Asia-Pacific region from 2004 to 2020. The institutional quality is proxied by five indicators, including (i) business sophistication, (ii) regulatory quality, (iii) investment freedom, (iv) government effectiveness, and (v) the rule of law. The advanced panel smooth transition technique ensures that the asymmetric effects of institutional quality on financial inclusion are substantiated depending on the income level across countries in the sample. We find that institutional quality's effects on financial inclusion are asymmetric depending on the income level. Our findings indicate that middle-income countries such as Vietnam and other emerging nations in the Asia-Pacific region mostly benefit from the positive effects of institutional reform to ensure more inclusive economic growth in the future. |
| first_indexed | 2024-04-11T00:52:25Z |
| format | Article |
| id | doaj.art-973d3586dc6a48158f353bb7ca280b8c |
| institution | Directory Open Access Journal |
| issn | 2405-8440 |
| language | English |
| last_indexed | 2024-04-11T00:52:25Z |
| publishDate | 2022-12-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Heliyon |
| spelling | doaj.art-973d3586dc6a48158f353bb7ca280b8c2023-01-05T08:37:57ZengElsevierHeliyon2405-84402022-12-01812e12016The asymmetric effects of institutional quality on financial inclusion in the Asia-pacific regionLoan Thi-Hong Van0Nhan Thien Nguyen1Hung Le-Phuc Nguyen2Duc Hong Vo3School of Advanced Study, Ho Chi Minh City Open University, Viet NamThe Research Centre in Business, Economics and Resources, Ho Chi Minh City Open University, Viet Nam; Corresponding author.The Research Centre in Business, Economics and Resources, Ho Chi Minh City Open University, Viet NamThe Research Centre in Business, Economics and Resources, Ho Chi Minh City Open University, Viet Nam; Corresponding author.Financial inclusions are generally considered an effective mechanism to support sustainable economic growth in emerging markets. While the symmetric effects of institutional quality on financial inclusion have been widely investigated, their asymmetric effects have largely been ignored in existing literature, particularly for emerging markets. In this paper, we estimate the index of financial inclusion for 19 countries in the Asia-Pacific region from 2004 to 2020. The institutional quality is proxied by five indicators, including (i) business sophistication, (ii) regulatory quality, (iii) investment freedom, (iv) government effectiveness, and (v) the rule of law. The advanced panel smooth transition technique ensures that the asymmetric effects of institutional quality on financial inclusion are substantiated depending on the income level across countries in the sample. We find that institutional quality's effects on financial inclusion are asymmetric depending on the income level. Our findings indicate that middle-income countries such as Vietnam and other emerging nations in the Asia-Pacific region mostly benefit from the positive effects of institutional reform to ensure more inclusive economic growth in the future.http://www.sciencedirect.com/science/article/pii/S2405844022033047Institutional qualityFinancial inclusionAsymmetric effectsPanel smooth transition regressionAsia-pacific region |
| spellingShingle | Loan Thi-Hong Van Nhan Thien Nguyen Hung Le-Phuc Nguyen Duc Hong Vo The asymmetric effects of institutional quality on financial inclusion in the Asia-pacific region Heliyon Institutional quality Financial inclusion Asymmetric effects Panel smooth transition regression Asia-pacific region |
| title | The asymmetric effects of institutional quality on financial inclusion in the Asia-pacific region |
| title_full | The asymmetric effects of institutional quality on financial inclusion in the Asia-pacific region |
| title_fullStr | The asymmetric effects of institutional quality on financial inclusion in the Asia-pacific region |
| title_full_unstemmed | The asymmetric effects of institutional quality on financial inclusion in the Asia-pacific region |
| title_short | The asymmetric effects of institutional quality on financial inclusion in the Asia-pacific region |
| title_sort | asymmetric effects of institutional quality on financial inclusion in the asia pacific region |
| topic | Institutional quality Financial inclusion Asymmetric effects Panel smooth transition regression Asia-pacific region |
| url | http://www.sciencedirect.com/science/article/pii/S2405844022033047 |
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