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Document Type
Article
Abstract
Numerous studies have constructed financial inclusion indexes for Indonesia, using amultidimensional approach. However, there is a problem with the methodology, whichassumes that all the dimensions play the same role in defining financial inclusion,since they are based on equal weighting criteria. This paper aims to obviate concernswith the methodology by developing a more empirically based index, namely, aweighted multidimensional index of financial inclusion based on two-stage principalcomponent analysis. In other words, we endogenize the weights. We find that usage isthe most important dimension in defining financial inclusion in Indonesia, followedby availability and access.
Recommended Citation
Hanivan, Hilman and Nasrudin, Nasrudin
(2019)
"A FINANCIAL INCLUSION INDEX FOR INDONESIA,"
Bulletin of Monetary Economics and Banking: Vol. 22:
No.
3, Article 6.
DOI: https://doi.org/10.21098/bemp.v22i3.1056
Available at:
https://bulletin.bmeb-bi.org/bmeb/vol22/iss3/6
First Page
351
Last Page
366
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License
Country
Indonesia
Affiliation
Statistics Indonesia