Shadow Economy, Outreach of Financial Institutions and Financial Inclusion: A Study of Balkan Countries

Qaiser Ali Malik; Hina Affandi

Abstract:

Financial inclusion is a core pillar of development policy in the financial system. This research is an endeavor to empirically inspect the influence of the shadow economy and the outreach of financial institutions on financial inclusion. Annual data has been gathered from the financial institutions operating in six Balkan countries for the year 2006-2017. It is suggested that the shadow economy has a significant impact on the financial inclusions and the outreach of financial institutions is also found to have a significant effect on financial inclusion. The non-linear co-integration approach has been opted to recognize the asymmetric effects by exploring how the shadow economy and financial institutions’ outreach affects financial inclusion. This research study has various implications for the financial system which can add to the improvement of the banking and nonbanking sectors of the Balkan countries. Disciplinary: Education Sciences; Technology in Education

research from:

• Foundation University - Faculty of Management Sciences

Year:

2019

Type of Publication:

Article

Journal:

International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies

Volume:

11

Pages:

1-11

Month:

11

DOI:

DOI: 10.14456/ITJEMAST.2020.18