Financial inclusion across major Indian states
Some spatial panel econometric evidence
Bibliographic Data
| ID | 21515926 |
|---|---|
| Authors | Kamal Sai Sadharma Erra (0000-0002-0314-1242, University of Hyderabad), Debashis Acharya (0000-0003-2378-2992, University of Hyderabad) |
| Year | 2021 |
| Volume | 48 |
| Issue | 3 |
| Pages | 419-436 |
| Publication date | 2021-01-08 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | International Journal of Social Economics (JOURNAL) |
| Journal identifiers | ISSN: 0306-8293 • E-ISSN: 1758-6712 |
| Publisher | Emerald (PUBLISHER) |
| DOI | 10.1108/ijse-06-2020-0392 |
| OpenAlex | W3119465462 |
| Language | EN |
| Citations received | 1 |
| References cited | 35 |
Purpose This paper aims to test for spatial convergence in financial inclusion across major Indian states and union territories. Design/methodology/approach After initially building an Index of Financial Inclusion (IFI) for major Indian states between 2003 and 2016, exploratory spatial data analysis (ESDA) is employed to draw inferences about mean and variance of IFI. The paper then seeks to confirm the ESDA results through spatial panel regression techniques. Finally, spatial results are correlated with results from aspatial convergence measures. Findings The study finds that there is no evidence of spatial convergence in financial inclusion over the study period, suggesting that those states that were relatively less financially included remained so through the study period. The study also asserts the relevance of certain important determinants, namely, per capita income, infrastructure, industrialization and gender. Research limitations/implications This study has two limitations. First, only banking institutions are considered in measuring financial inclusion. Second, due to lack of a consistent indicator of gender participation across states, we had to employ sex ratio as a proxy. Practical implications The study suggests that policies to expand financial inclusion in Indian states, especially those with low inclusion levels are likely to benefit neighbouring states also, thereby accelerating the financial inclusion drive across states. Originality/value The study is a first in the Indian context to estimate the spatial dependence of financial inclusion and provides relevant implications for policymakers and bankers to target financial inclusion schemes in backward states
Demographic economics · Development economics · Econometrics · Economic growth · Economics · Financial inclusion · Financial services · Geography · Panel data · Per capita income · Social science · Sociology · Spatial econometrics · Statistics · Demography · Financial Literacy, Pension, Retirement Analysis · Housing Market and Economics · Mathematics · Microfinance and Financial Inclusion · Finance
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| Citations per year | 0.33 |
|---|---|
| Citation span | 2023 - 2023 (1) |
| Highly cited | No |