The Association between Domestic Remittances and Financial Inclusion form Selected Upper Middle-Income and Lower Midlle-Income Countries in Asia

Date

6-2024

Degree

Bachelor of Science in Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Maria Luisa G. Valera

Committee Member

Ma. Nova R. Nguyen, Gideon P. Carnaje, Ma. Angeles O. Catelo

Abstract

Using the World Bank Global Findex database, this study investigates the association of domestic remittances and financial inclusion in Asian countries particularly belonging to the upper-middle income (UMICs) and lower middle-income (LMICs). The results reveal that UMICs enjoy higher levels of financial inclusion than LMICs particularly in formal credit. The use of bank or mobile accounts is found common in UMICs while money transfer services in LMICs. Individuals report that high cost of bank account is the main reason for not having formal account. The findings show that domestic remittances have a significant association with formal account ownership, and formal credit in UMICs and LMICs. Additionally, domestic remittances are not associated with formal saving in LMICs while positively associated with UMICs. The study also finds that communication technology such as having mobile phone and access to internet is positively associated with formal account ownership and formal saving but not in formal credit. Among the socio- demographic characteristics age has a consistent nonlinear association with financial inclusion while sex and education vary across financial inclusion indicators between UMICs and LMICs. Policies targeted to reduce bank costs, enhance internet access, and promote more secure financial services would stimulate a more inclusive financial system.

Language

English

LC Subject

Income

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 E2 2024 C66

Notes

Viewing access to electronic resources is restricted solely to UP Gmail accounts. Any access and share requests from external organizations and personal email accounts will be promptly declined.

Document Type

Thesis

Link to Full Text

Share

COinS