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Three Essays on Financial Inclusion
Sapre, Nikhil
Sapre, Nikhil
Publication Date
2021
End of Embargo
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The University of Bradford theses are licenced under a Creative Commons Licence.
Peer-Reviewed
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Accepted for publication
Institution
University of Bradford
Department
Faculty of Management, Law and Social Sciences
Awarded
2021
Embargo end date
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Abstract
This thesis comprises three empirical studies. The first study assesses the
multidimensional concept of financial inclusion with an objective to segregate the
key determinants, from a range of potential influencing factors. Using a large
cross-country sample of developing countries, over a 14-year period from 2004
to 2017, findings suggest that physical access to banking services, advances in
financial technology, government effectiveness and rural population are
significantly associated with financial inclusion and should be the principal focus
of policy initiatives. Sub-sample analysis shows considerable differences in the
key determining factors of financial inclusion across six regions and three income
groups. The second study empirically investigates the complex relationship
between financial inclusion and financial stability for the period and sample
considered in the first study, by employing Instrumental Variables Two Stage
Least Squares (IV 2SLS) estimation and Difference-in-Differences (DID)
methods. Results show that financial inclusion has a significant positive impact on financial stability. Also, countries that actively implement policies to promote
financial inclusion experience an enhanced positive impact on stability, as
compared to other countries. The third study constructs a Financial Inclusion
Index (FII) for 23 Indian states over a 44-year period and then uses the composite
measure to examine the impact of financial inclusion on economic growth.
Unconditional Quantile Regression (UQR) estimates reveal a positive impact of
inclusion on growth, with richer states in the west and the south benefitting more
in terms of higher income caused by a higher level of financial inclusion than the
poorer states in the north and the east, thus widening the income gap. While,
liberalisation augments the financial inclusion induced income inequality, the
proportion of the rural population reduces it.
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Type
Thesis
Qualification name
PhD