The impact of financial exclusion on the economic growth of selected countries in Asia

• Main Authors: Decampong, Farina Alaizah B., Kaw, Hannalyn N., Molina, Soia L., Tan Casis, Richelle Andrea Dominique M.
• Format: text
• Language: English
• Published: Animo Repository 2022
• Subjects: Financial services industry—Asia; Asia—Economic conditions; Finance and Financial Management
• Online Access: https://animorepository.dlsu.edu.ph/etdb_econ/54; https://animorepository.dlsu.edu.ph/context/etdb_econ/article/1063/viewcontent/The_impact_of_financial_exclusion2_on_the_economic_growth.pdf
• Institution: De La Salle University

It has been an important goal for developing nations to decrease financial exclusion as this could support their economic growth. However, there exists limited literature on how financial exclusion could affect a country’s economic growth. This study will consider the case of selected countries in Asia from different income classifications as the subjects of this attempt to compare how financial exclusion could vary given their different income level groups. The distance based approach developed by Sarma (2015) will be used to calculate the financial exclusion index of each country with the use of data from the Financial Access Survey (FAS), from the years 2007 to 2019. Afterwards, a regression test is conducted to test whether there is a linear relationship between financial exclusion and economic growth (which will be measured using GDP growth rate). It was found that financial exclusion has a positive correlation with economic growth however this is due to the nature of the variables chosen.