The effect of financial inclusion on multidimensional poverty: the case of Vietnam

Poverty reduction has become a top goal in the socio-economic development strategies of countries and a topic of interest for researchers. A number of prior empirical studies have identified the importance of financial inclusion to poverty reduction. However, most of these studies assess the effect...

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Main Authors: Huong Thi Thanh Tran, Ha Thi Thu Le, Nga Thanh Nguyen, Tue Thi Minh Pham, Huyen Thanh Hoang
Format: Article
Language:English
Published: Taylor & Francis Group 2022-12-01
Series:Cogent Economics & Finance
Subjects:
Online Access:https://www.tandfonline.com/doi/10.1080/23322039.2022.2132643
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author Huong Thi Thanh Tran
Ha Thi Thu Le
Nga Thanh Nguyen
Tue Thi Minh Pham
Huyen Thanh Hoang
author_facet Huong Thi Thanh Tran
Ha Thi Thu Le
Nga Thanh Nguyen
Tue Thi Minh Pham
Huyen Thanh Hoang
author_sort Huong Thi Thanh Tran
collection DOAJ
description Poverty reduction has become a top goal in the socio-economic development strategies of countries and a topic of interest for researchers. A number of prior empirical studies have identified the importance of financial inclusion to poverty reduction. However, most of these studies assess the effect of financial inclusion on income poverty reduction. There are relatively few studies evaluating the impact of financial inclusion, especially in terms of household use of financial products and services, on multidimensional poverty reduction. This study uses a multivariate probit model with a dataset from Vietnam to estimate the effect of financial inclusion in terms of household use of financial products and services and other factors on multidimensional poverty. The results show that financial inclusion reduces multidimensional poverty. Specifically, households owning bank accounts, having savings at banks, using debit cards, credit cards, or investing in stocks or bonds are less likely to fall into multidimensional poverty. Based on the findings, we provide several recommendations for policymakers to increase the level of households’ use of financial products and services.
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spelling doaj-art-45a96f555cde44028ed669b11351dccf2025-08-20T03:12:41ZengTaylor & Francis GroupCogent Economics & Finance2332-20392022-12-0110110.1080/23322039.2022.2132643The effect of financial inclusion on multidimensional poverty: the case of VietnamHuong Thi Thanh Tran0Ha Thi Thu Le1Nga Thanh Nguyen2Tue Thi Minh Pham3Huyen Thanh Hoang4Faculty of Accounting and Auditing, Banking Academy, 12 Chua Boc Street, Hanoi, VietnamFaculty of Accounting and Auditing, Banking Academy, 12 Chua Boc Street, Hanoi, VietnamFaculty of Mathematics, Banking Academy, 12 Chua Boc Street, Hanoi, VietnamFaculty of Accounting and Auditing, Banking Academy, 12 Chua Boc Street, Hanoi, VietnamFaculty of Accounting and Auditing, Banking Academy, 12 Chua Boc Street, Hanoi, VietnamPoverty reduction has become a top goal in the socio-economic development strategies of countries and a topic of interest for researchers. A number of prior empirical studies have identified the importance of financial inclusion to poverty reduction. However, most of these studies assess the effect of financial inclusion on income poverty reduction. There are relatively few studies evaluating the impact of financial inclusion, especially in terms of household use of financial products and services, on multidimensional poverty reduction. This study uses a multivariate probit model with a dataset from Vietnam to estimate the effect of financial inclusion in terms of household use of financial products and services and other factors on multidimensional poverty. The results show that financial inclusion reduces multidimensional poverty. Specifically, households owning bank accounts, having savings at banks, using debit cards, credit cards, or investing in stocks or bonds are less likely to fall into multidimensional poverty. Based on the findings, we provide several recommendations for policymakers to increase the level of households’ use of financial products and services.https://www.tandfonline.com/doi/10.1080/23322039.2022.2132643financial inclusionmultidimensional povertymultivariate probitpoverty reduction
spellingShingle Huong Thi Thanh Tran
Ha Thi Thu Le
Nga Thanh Nguyen
Tue Thi Minh Pham
Huyen Thanh Hoang
The effect of financial inclusion on multidimensional poverty: the case of Vietnam
Cogent Economics & Finance
financial inclusion
multidimensional poverty
multivariate probit
poverty reduction
title The effect of financial inclusion on multidimensional poverty: the case of Vietnam
title_full The effect of financial inclusion on multidimensional poverty: the case of Vietnam
title_fullStr The effect of financial inclusion on multidimensional poverty: the case of Vietnam
title_full_unstemmed The effect of financial inclusion on multidimensional poverty: the case of Vietnam
title_short The effect of financial inclusion on multidimensional poverty: the case of Vietnam
title_sort effect of financial inclusion on multidimensional poverty the case of vietnam
topic financial inclusion
multidimensional poverty
multivariate probit
poverty reduction
url https://www.tandfonline.com/doi/10.1080/23322039.2022.2132643
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