Open AccessFINANCIAL INCLUSIONS, FINANCIAL STABILITY, AND INCOME INEQUALITY IN OIC COUNTRIES: A GMM AND QUANTILE REGRESSION APPLICATION
Author(s) -
Fatima Muhammad Abdulkarim,
Hamisu Sadi Ali
Publication year - 2019
Publication title -
journal of islamic monetary economics and finance
Language(s) - English
Resource type - Journals
eISSN - 2460-6146
pISSN - 2460-6618
DOI - 10.21098/jimf.v5i2.1069
Subject(s) - financial inclusion , quantile , inequality , quantile regression , financial stability , estimation , economics , stability (learning theory) , economic inequality , panel data , islam , finance , inclusion (mineral) , econometrics , financial system , financial services , mathematics , geography , mathematical analysis , management , archaeology , machine learning , computer science , gender studies , sociology
This paper examines the relationship among financial inclusion, financial stability,and income inequality in some selected Organization of Islamic Corporations (OIC)countries. Data were analyzed using dynamic panel estimation and quantile regressionfor 47 OIC countries during 2006 - 2016. The results of dynamic GMM reveal thatfinancial inclusion has a positive and significant effect on both financial stability andincome inequality. This implies that increased financial access helped narrow the gapbetween the rich and poor as well as provided financial stability in OIC countries.Therefore, policy makers should strive to design policies that will make financialservices more available and affordable to the masses. Thus, it is safe to conclude thatavailability of both Islamic and conventional finances in OIC countries contributespositively to the development of the countries.
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