Penetration Dimension of Financial Inclusion and Poverty Index

Ewah, Evelyn Bassey (2024) Penetration Dimension of Financial Inclusion and Poverty Index. International Journal of Advanced Research in Accounting, Economics and Business Perspectives, 8 (1). pp. 353-362. ISSN 2636-6894

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Abstract

This study examined the relationship between the penetration dimension of financial inclusion and poverty reduction in selected developing countries between 2012 and 2019. Using time series data and appropriate pre-regression diagnostic tests, the study employed econometric analysis to investigate the impact of financial penetration, measured primarily by the number of bank deposit accounts, on poverty headcount. The results indicate that the penetration dimension of financial inclusion exerts a negative but statistically non-significant impact on poverty reduction. This finding suggests that increasing access to deposit accounts alone does not guarantee improvements in the welfare of low-income populations. Structural barriers such as high transaction costs, complex account-opening procedures, geographical disparities, and limited relevance of financial products constrain the transformative potential of financial inclusion. The study recommends policy interventions that address these systemic challenges, including leveraging government payment systems, promoting mobile money platforms, and reducing entry barriers to financial services. Such strategies would enhance accessibility, affordability, and inclusivity, thereby strengthening financial inclusion as a tool for poverty alleviation.

Item Type:	Article
Subjects:	H Social Sciences > HG Finance
Divisions:	Faculty of Management and Social Sciences
Depositing User:	mrs chioma hannah
Date Deposited:	19 Aug 2025 11:31
Last Modified:	19 Aug 2025 11:31
URI:	http://eprints.gouni.edu.ng/id/eprint/5087

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