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Financial inclusion and multidimensional poverty in Ecuador: A spatial approach

Author

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  • Álvarez-Gamboa, Javier
  • Cabrera-Barona, Pablo
  • Jácome-Estrella, Hugo
Abstract
In recent years, studies on poverty and inequality have focused on financial inclusion as a mechanism to improve people's living conditions. This paper studies the impact of financial inclusion on multidimensional poverty in the provinces of Ecuador during the period 2015–2018. A synthetic index of financial inclusion was developed, using the principal components analysis methodology in two stages. Additionally, using SARAR-type spatial panel data models, space is added as an explanatory factor to identify the existence of spatial effects among the Ecuadoŕs provinces, such as dependency and heterogeneity. The results indicate that financial inclusion has a positive and significant effect on poverty alleviation. This study also shows the spatial heterogeneity of multidimensional poverty and financial inclusion, and can support provincial-level planning to tackle territorial inequalities.

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  • Álvarez-Gamboa, Javier & Cabrera-Barona, Pablo & Jácome-Estrella, Hugo, 2021. "Financial inclusion and multidimensional poverty in Ecuador: A spatial approach," World Development Perspectives, Elsevier, vol. 22(C).
    • Handle: RePEc:eee:wodepe:v:22:y:2021:i:c:s2452292921000254
    DOI: 10.1016/j.wdp.2021.100311
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    5. Jesús Antonio López Cabrera & Francisco Gabriel Villarreal & Diego Cardoso López, 2023. "Una propuesta de medición de la inclusión financiera en México," Remef - Revista Mexicana de Economía y Finanzas Nueva Época REMEF (The Mexican Journal of Economics and Finance), Instituto Mexicano de Ejecutivos de Finanzas, IMEF, vol. 18(3), pages 1-41, Julio - S.
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    7. Byron Quito & María de la Cruz del Río-Rama & Marta Peris-Ortiz & José Álvarez-García, 2024. "Spatial-Temporal Determinants of Income Inequality in the Cantons of Ecuador between 2010 and 2019: a Spatial Panel Econometric Analysis," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(2), pages 7744-7768, June.
    8. Salman Mahmood & Wen Shuhui & Shoaib Aslam & Tanveer Ahmed, 2023. "Financial Inclusion: Does it matter in Alleviating Poverty in Pakistan," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 169(3), pages 1125-1146, October.
    9. Ding, Guoxuan & Kang, Nier, 2024. "The impact of digital financial inclusion on China's regional disparities in the quality of economic development: Based on the relational data paradigm," Economic Analysis and Policy, Elsevier, vol. 81(C), pages 629-651.
    10. Carlos Mendez & Felipe Santos-Marquez, 2022. "Economic and Social Disparities across Subnational Regions of South America: A Spatial Convergence Approach," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 64(4), pages 582-605, December.
    11. Zhang, Jiaping & Zhang, Huirong & Gong, Xiaomei, 2022. "Mobile payment and rural household consumption: Evidence from China," Telecommunications Policy, Elsevier, vol. 46(3).
    12. He, Jinfu & Liu, Yu, 2024. "Digital inclusion finance, social governance and household investment decisions," Finance Research Letters, Elsevier, vol. 62(PB).

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