Open AccessFactors affecting financial inclusion in transitional country: A case of Vietnam
Author(s) -
Linh Hoai,
Xuan Thanh Ngo,
Linh Tuan Luu,
Thuy Thu Cao
Publication year - 2020
Publication title -
international journal of social science and economics invention
Language(s) - English
Resource type - Journals
ISSN - 2455-6289
DOI - 10.23958/ijssei/vol05-i12/180
Subject(s) - financial inclusion , inclusion (mineral) , economic shortage , business , probit model , finance , financial services , economics , econometrics , psychology , social psychology , linguistics , philosophy , government (linguistics)
The authors aim at investigating factors driving and hindering financial inclusion in Vietnam. The dataset was achieved from the 2017 Global Financial Inclusion (Global Findex) Database of Vietnam along with two probit regressions were used to indentify factors driving access to formal financial system. The results showed that key obstacles to have a formal account are income shortage, education attainment, geographical location and individual perceptions. Converserly, age made a huge indicator of usage of formal financial services. Based on these findings, some recommendations were proposed to enhance financial inclusion for people in emerging countries such as Vietnam.