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Journal : Jurnal Ekonomi

Drivers and barriers to financial inclusion: New insights from Muslim countries Akasumbawa, Muhammad Dedat Dingkoroci; Haryono, Slamet; Chairunnisa
Jurnal Ekonomi & Keuangan Islam Volume 10 No. 2, July 2024
Publisher : Faculty of Economics, Universitas Islam Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20885/JEKI.vol10.iss2.art3

Abstract

Purpose – This study examines the factors driving and barriers to financial inclusion in Organisation of Islamic Cooperation (OIC) countries.Methodology – This study employs panel data analysis using fully modified ordinary least squares (FMOLS) and dynamic ordinary least squares (DOLS) methods. The sample consists of OIC countries from 2011 to 2021.Findings – According to the FMOLS model, remittances, bank stability, and government debt are key drivers of long-term financial inclusion, while inflation, trade openness, and economic development act as barriers. Bank competition does not significantly impact financial inclusion. In the DOLS model, remittances and bank stability remain significant drivers, with inflation and economic growth acting as barriers. However, in the long term, financial inclusion is not significantly influenced by government debt or competition.Implications – This study offers insights for financial institutions and governments. Financial institutions should improve their access to low-income groups and small businesses. Governments should promote financial inclusion and stability through sound macroeconomic policy. Policymakers can use these findings to focus on key factors for a sustainable economy.Originality – This study fills a gap by exploring the factors affecting financial inclusion in OIC countries, a less-studied topic. It also uses additional indicators to measure the financial inclusion index, leading to more comprehensive results.
Co-Authors A Aribowo Adi Zulkifli Boangmanalu Ahmad Ari Masyhuri Ahmad Fauzan Ahmad Jauhari Hamid Ripki Akasumbawa, Muhammad Dedat Dingkoroci Amelia Amelia Putri Anita Aria Mahardika Ashabi Kahfy Bayu Teguh Ujianto Budi Arianto PS, Budi Arianto PS Carla Chairunnisya Chairunnisa Sahril Chaniago Cindy Destika Cindy Yunika Safithry Difa Rahmawati Cibro Faris Taufiqurrahman Fathia, Tasya Fitriani Ningsi Friska Dela Oktapiani Hadis Purba Hanina Hanna Wirena Putri Hasna Dewi Hegar Harini Herlina Hibatillah Hasanah I B Wiranto I R Alfikri Ihsana Taufiqo Muflihah Iis Pusparina Ikhsan, Maulana Intan Fadilah Iqbal, Teuku Yudhi Ira Yuniati Jahrona Harahap Jihan Khairunnisa Khairunnisa Khuzaini Lalu Mulyadi Mailisa, Wiska Marhadi Masrum Masyhuri , Ahmad Ari Millizia, Anna Muhammad Alfiansyah Muhammad Ikhlas Munawaroh Nabila Putri Natasya Nadia Safana Ninik Asmaningsih Soemyarso Novi Andaresta Nur Afiqoh Nurrina Zulfa Nurul Hikmah Baharuddin Pamudi, Berwi Fazri Purwana E.S., Dedi Rahmah, Aqlima Rahmat Hidayat Reira Izzatunisa Rendi Praja Pratama Revalina Stevy Revita Sari Reza Aril Ahri Rifa Shakila Risky Vitria Prasetyo Rizal, Muhammad Ifani Syarkawi Rizaldy, Muhammad Bayu Rizka, Adi RIZKI AMALIYAH S O Saraswat Samadan, Puspa Dewiputri Sayuti, Muhammad Shupaeroh, Hanna Yasmin Sipa'us Sa'adah Siti Ardianti Slamet Haryono Sovia Harahap Sy, Evha Nazalatus Sa'adiyah Syahrial Shaddiq Teuku Ilhami Surya Akbar Tri Wulan Dari Wahyu Agung Hidayatullah Wahyuni, Hendra Wianda Ramadhanty wiwit, Wiwit Aditama Yughni Aulia Nabila Zafirah Choirunisyah Zaneta Maharani Zuhrina Aidha Harahap Zulfikar Zulfikar