publication . Preprint . 2012

Income related inequality in financial inclusion and role of banks: Evidence on financial exclusion in India

Rama Pal; Rupayan Pal;
Open Access
  • Published: 01 Jun 2012
Abstract
This paper analyzes income related inequality in financial inclusion in India using a representative household level survey data, linked to State-level factors. It shows that (a) the extent of financial exclusion is quite severe among households across all income groups, (b) income related inequality in financial inclusion varies widely across sub-national regions in India, but it is quite high in most of the cases, (c) income related inequality in financial inclusion cannot be considered as synonymous to income inequality. A notable result is that greater availability of banking services fosters financial inclusion, particularly among the poor. This paper also ...
Subjects
free text keywords: Financial inclusion, inequality, concentration index, banks, jel:D3, jel:O16, jel:O17, jel:G2, jel:G21

Abu-Bader, S. and Abu-Qarn, A. S. (2008) “Financial development and economic growth: The Egyptian experience,” Journal of Policy Modeling, 30(5), 887-898

Aghion, Philippe and Bolton, Patrick(1997)“A theory of trickle-down growth and development,” Review of Economic Studies, 64(2), 151-172 [OpenAIRE]

Ang, James B. (2010) “Finance and Inequality: The Case of India,” Southern Economic Journal, 76(3), 738-761

Ashraf, N., Karlan, D. S. and Yin, W. (2006) “Tying Odysseus to the Mast: Evidence from a Commitment Savings Product in the Philippines,” Quarterly Journal of Economics, 121(2), 635-672. [OpenAIRE]

Ayyagari. M.; Demirgüç-KuntA. And Maksimovic, V.(2008) “How Important Are Financing Constraints? The Role of Finance in the Business Environment,” World Bank Economic Review, 22(3), 483-516 [OpenAIRE]

Banerjee, A. V., and Newman, A. F.(1993)“Occupational choice and the process of development,” Journal of Political Economy,101(1), 274-98

Banerjee, A. and Duflo, E. (2005) “Growth theory through the lens of development economics,” In: Handbook of Economic Growth, Vol. 1, 473-552

Bauer, M., Chytilová, J. and Morduch, J. (2010) “Behavioral Foundations of Microcredit: Experimental and Survey Evidence,” IZA Discussion Paper No. 4901 [OpenAIRE]

Beck, T. and Levine, R. (2002) “Industry growth and capital allocation: does having a market- or bank-based system matter?”Journal of Financial Economics, 64(2), 147-180

Abstract
This paper analyzes income related inequality in financial inclusion in India using a representative household level survey data, linked to State-level factors. It shows that (a) the extent of financial exclusion is quite severe among households across all income groups, (b) income related inequality in financial inclusion varies widely across sub-national regions in India, but it is quite high in most of the cases, (c) income related inequality in financial inclusion cannot be considered as synonymous to income inequality. A notable result is that greater availability of banking services fosters financial inclusion, particularly among the poor. This paper also ...
Subjects
free text keywords: Financial inclusion, inequality, concentration index, banks, jel:D3, jel:O16, jel:O17, jel:G2, jel:G21

Abu-Bader, S. and Abu-Qarn, A. S. (2008) “Financial development and economic growth: The Egyptian experience,” Journal of Policy Modeling, 30(5), 887-898

Aghion, Philippe and Bolton, Patrick(1997)“A theory of trickle-down growth and development,” Review of Economic Studies, 64(2), 151-172 [OpenAIRE]

Ang, James B. (2010) “Finance and Inequality: The Case of India,” Southern Economic Journal, 76(3), 738-761

Ashraf, N., Karlan, D. S. and Yin, W. (2006) “Tying Odysseus to the Mast: Evidence from a Commitment Savings Product in the Philippines,” Quarterly Journal of Economics, 121(2), 635-672. [OpenAIRE]

Ayyagari. M.; Demirgüç-KuntA. And Maksimovic, V.(2008) “How Important Are Financing Constraints? The Role of Finance in the Business Environment,” World Bank Economic Review, 22(3), 483-516 [OpenAIRE]

Banerjee, A. V., and Newman, A. F.(1993)“Occupational choice and the process of development,” Journal of Political Economy,101(1), 274-98

Banerjee, A. and Duflo, E. (2005) “Growth theory through the lens of development economics,” In: Handbook of Economic Growth, Vol. 1, 473-552

Bauer, M., Chytilová, J. and Morduch, J. (2010) “Behavioral Foundations of Microcredit: Experimental and Survey Evidence,” IZA Discussion Paper No. 4901 [OpenAIRE]

Beck, T. and Levine, R. (2002) “Industry growth and capital allocation: does having a market- or bank-based system matter?”Journal of Financial Economics, 64(2), 147-180

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