Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/257091 
Year of Publication: 
2020
Citation: 
[Journal:] Economies [ISSN:] 2227-7099 [Volume:] 8 [Issue:] 2 [Article No.:] 42 [Publisher:] MDPI [Place:] Basel [Year:] 2020 [Pages:] 1-20
Publisher: 
MDPI, Basel
Abstract: 
Financial inclusion is the process of including the people who lack formal financial services. The concept of financial inclusion emerged globally in the times of millennium and is defined as the availability and usage of formal financial services. It essentially facilitates economic growth; the financially included individuals can invest in business, education, and entrepreneurship, which can pave way to poverty alleviation and economic development. In the context of Pakistan, a developing economy of South Asia, the financial landscape presents a grim picture of financial inclusion where only 16 percent of the population is financially included. Despite the current focus of policies and regulations devoted to enhancing access to finance in Pakistan from the supply side, the current state of financial inclusion is limited. Therefore, this study investigates the financial inclusion process for Pakistan from the supply side. We analyze the supply-side dimension of access by employing econometric technique of autoregressive distributive lag (ARDL) and using time series data of banking sector of Pakistan. Our empirical findings suggest that the greater the size, geographic outreach, and demographic outreach of the banks, the greater the contribution to the financial inclusion. Additionally, improvement in soft consumer loans and increase in small-sized advances reinforces the financial inclusion process.
Subjects: 
ARDL
banking sector of Pakistan
financial inclusion
supply side
JEL: 
G21
G29
C22
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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