Open AccessThe Determinants of Financial Inclusion in Egypt
Author(s) -
Abeer Rashdan,
Noura Eissa
Publication year - 2019
Publication title -
international journal of financial research
Language(s) - English
Resource type - Journals
eISSN - 1923-4031
pISSN - 1923-4023
DOI - 10.5430/ijfr.v11n1p123
Subject(s) - financial inclusion , financial literacy , inclusion (mineral) , order (exchange) , economics , financial system , logistic regression , business , finance , financial services , sociology , social science , medicine
Recently, Egypt has prioritized financial inclusion in its monetary reform agenda. The objective of this paper is to examine the determinants of financial inclusion in Egypt using the World Bank’s Global Findex 2017 database to conduct a logistic regression. Empirical results prove that there is no significant relationship between gender and the level of financial inclusion in Egypt, whereas, richer, more educated and older individuals are more strongly included in the financial system. The results reveal that the main barrier to financial inclusion is actually a lack of money; which hinders opening a formal account, savings account or credit account. Through possible policy measures, the paper recommends the need for a progressive approach to robust financial literacy and awareness in order for a positive economic growth role of financial inclusion to emerge in the Egyptian economy.