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An Empirical Analysis of the Effect of ICT and E-Government on Financial Inclusion


The benefits of financial inclusion on human and economic development are well-documented in the literature. Many countries and organizations have developed financial inclusion policies, and strategies that often include increasing access to ICT platforms and infrastructure. This paper empirically studies the relationship of financial inclusion with ICT and e-government. The results suggest that, in general, higher level of ICT and e-government is associated with greater financial inclusion. However, this relationship varies across dimensions of financial inclusion and across forms of ICT and e-government. We also find that ICT and e-government are more strongly associated with usage of financial services than with availability of or access to such services. In addition, while the availability of online services promotes financial inclusion, developing crucial ICT infrastructure has greater marginal effect. The relationship of financial inclusion with ICT and e-government is also stronger in lower-income countries than it is in higher-income ones.


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