Social inclusion and financial inclusion: international evidence

Abstract

Purpose This study aims to investigate the association between social inclusion and financial inclusion. Social inclusion and financial inclusion are two major development policy agendas in many countries, and the association between them has received little attention in the policy and academic literature. Design/methodology/approach The findings reveal a positive and significant correlation between social inclusion and financial inclusion for Asian countries, Middle Eastern countries and African countries while the correlation between social inclusion and financial inclusion is negative for European countries. The findings also show that European and Asian economies experience higher levels of social inclusion and account ownership in a formal financial institution while African countries and Middle Eastern countries experience lower levels of social inclusion and account ownership. Originality/value The association between social and financial inclusion has received little attention in the policy and academic literature. This is the first study that investigates the association between social and financial inclusion.