Measuring financial inclusion

Mandira Sarma

124 citations0/0 files storedRePEc: Research Papers in Economics

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Microfinance and Financial Inclusion Income, Poverty, and Inequality Economic Growth and Development

Abstract

Using a distance-based approach, this paper proposes an index of financial inclusion (IFI) – a measure of inclusiveness of a financial system that incorporates information on various dimensions of financial inclusion in a single number lying between 0 and 1. The proposed index is easy to compute and is comparable across economies and over time. It is unit-free, monotonous and homogeneous.

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