The Impact of Financial Inclusion on Poverty Level; Evidence from Selected East and Southeast Asian Countries

Abstract

Introduction - This research studies the Impact of financial inclusion on poverty levels in the East and Southeast Regions. Methodology - The sample of the study consists of ten East and Southeast Asian countries, and the data was collected from 2013 to 2022 to determine the impact of financial inclusion on poverty levels in the countries belonging to East and Southeast Asian countries. Number of Bank branches per 100,000 adults, Number of ATMs per 100,000 adults, Outstanding deposits with commercial banks (% of GDP) and Outstanding loans from commercial banks (% of GDP) represent the study's independent variables. The poverty headcount ratio represents the dependent variable. Panel data regression model is used as cross-sectional and time series nature of data. Findings - Based on the results, Findings also revealed that the number of Bank branches per 100,000 adults, the Number of ATMs per 100,000 adults and Outstanding loans from commercial banks (% of GDP) significantly impact the Poverty level in East and Southeast Asian countries and Financial Access dimension has a significant impact on the Poverty Level. In contrast, the financial usage dimension has a partial significance on the poverty level in the East and Southeast Asian Countries. Conclusion - The final results of the three models derived that the Financial Access dimension significantly impacts the Poverty level. The impact of the Usage dimension is partially significant on the poverty level. The number of Bank branches per 100,000 adults, Number of ATMs per 100,000 adults and outstanding loans from commercial banks (% of GDP) significantly impact the Poverty level in East and Southeast Asian regions. The findings of the study will guide decision-makers of the countries, governments, academics, and other stakeholders in making their strategic planning and effective decisions.