Measuring Index of Financial Inclusion: A Cross –Country Analysis

Authors

N. Chithra & Dr. K. K. Sabarirajan (Associate Professor)
Annamalai University, Chidambaram, Tamilnadu, India.

Abstract

The paper attempts to analyze the present scenario on financial inclusion across several developed and developing countries of the world, for the years 2015 and 2019. The study focuses on developing anIndex of financial inclusion (IFI) and in exploring its association with the human development index. It also focuses on the explanation of variation in observed IFI. Principal component method has been applied to calculate the three dimension indices (availability, access and usage) and finally IFI. And also pooled OLS with clustered standard error regression model has been used to explain the factors influencing financial inclusion across the countries of the world.