Thesis Public Defense | VNP25 Phạm Thị Ngọc Mai

Financial inclusion and poverty reduction in Asean from 2014 to 2018

Student: Phạm Thị Ngọc Mai, VNP 25

Supervisor: Prof.Dr. Nguyễn Trọng Hoài

Abstract:

Understanding financial inclusion in Asean may help reduce poverty as well as foster economic growth. The aim of this research is to investigate the impact of financial inclusion on poverty in the region during the period 2004-2018. The paper finds that access to the banking system could reduce poverty in Asean. Both Ordinary Least Square (OLS) and Generalized Method of Moments (GMM) techniques are used to examine the relationship. The results  show  that the outreach of ATMs could help reduce poverty rate. The impacts of outreach of the bank branches on poverty appeared endogeneity problem. This means that the demand for banking services increases when poverty reduction, and poverty reduction with economic growth generates pression on policy to enhance financial inclusion. The results of paper also reflect the improvement of education plays an important role to enhance financial inclusion and alleviates poverty rate, perhaps because both the demand side and the supply side of banking system are require knowledge about financial services. As for trade openness, the paper shows trade openness associate with poverty rate, so policy makers have to carefully consider the state of the economy to have strategy that help their countries achieve optimal benefits rather than lose in competition with foreign countries.

Key words: ASEAN, financial devlopment, financial inclusion, poverty, access

JEL: G00, O11, O16, N2