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Building a financial inclusion index and analyzing its impact on unemployment

Jurnal Perspektif Pembiayaan dan Pembangunan Daerah · Vol. 11 No. 5 (2023) · pp. 347–358

DOI
10.22437/ppd.v11i5.27269
ISSN
2355-8520, 2338-4603
Published
2023-12-31
Publisher
Program Magister Ilmu Ekonomi Pascasarjana Universitas Jambi
Language
en
License
creativecommons.org/licenses/by/4.0

Abstract

Financial inclusion has garnered attention from policymakers globally due to its potential to spur economic growth, alleviate poverty, and decrease unemployment. This study focuses on estimating the financial inclusion index across ten Southeast Asian countries utilizing principal component analysis. The objective is to identify the most representative index capable of accurately reflecting the financial inclusion indicators specific to each country. Additionally, the research seeks to explore the impact of financial inclusion on the unemployment rate. Data spanning from 2011 to 2021 were sourced from the World Bank. By employing panel regression estimation, the study reveals that digital financial inclusion does not significantly influence the unemployment rate, as indicated by a significance value of 0.118. Furthermore, a similar lack of impact was observed concerning GDP. Conversely, the inflation rate and education level variables affected the unemployment rate significantly, with significance values of 0.028 and 0.021, respectively. These empirical results suggest that policymakers should implement strategies to enhance financial inclusion, such as reducing the costs associated with financial services, offering incentives to the informal sector, and promoting education on the significance of financial instruments and institutions.

Keywords

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13 authors · 40 co-authorship links

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Co-authorOrganisationJoint articles
Idris IdrisAffiliation unknown4
Dewi Zaini PutriAffiliation unknown4
Melti Roza AdryAffiliation unknown3
Zul AzharAffiliation unknown2
Joan MarthaAffiliation unknown1
Yunnise PutriAffiliation unknown1
Ali AnisAffiliation unknown1

Affiliations come from OpenAlex; journal OAI-PMH metadata carries none. Authors without an OpenAlex ID are matched by name, which can merge or split people.

Metadata source: OAI-PMH (metadata jurnal) https://online-journal.unja.ac.id/index.php/JES/oai, first harvested 6 Nov 2026, last seen 8 Nov 2026.
Original metadata (oai_dc) 
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	<dc:title xml:lang="en">Building a financial inclusion index and analyzing its impact on unemployment</dc:title>
	<dc:creator xml:lang="en">Sari, Yollit Permata</dc:creator>
	<dc:creator xml:lang="en">Yeni, Isra</dc:creator>
	<dc:creator xml:lang="en">Pebriyani, Dewi</dc:creator>
	<dc:creator xml:lang="en">Akbar, Urmatul Uska</dc:creator>
	<dc:creator xml:lang="en">Putra, Hari Setia</dc:creator>
	<dc:creator xml:lang="en">Artha, Dwi Rani Puspa</dc:creator>
	<dc:subject xml:lang="en">Financial inclusion</dc:subject>
	<dc:subject xml:lang="en">Principle component analysis</dc:subject>
	<dc:subject xml:lang="en">Unemployment</dc:subject>
	<dc:description xml:lang="en">Financial inclusion has garnered attention from policymakers globally due to its potential to spur economic growth, alleviate poverty, and decrease unemployment. This study focuses on estimating the financial inclusion index across ten Southeast Asian countries utilizing principal component analysis. The objective is to identify the most representative index capable of accurately reflecting the financial inclusion indicators specific to each country. Additionally, the research seeks to explore the impact of financial inclusion on the unemployment rate. Data spanning from 2011 to 2021 were sourced from the World Bank. By employing panel regression estimation, the study reveals that digital financial inclusion does not significantly influence the unemployment rate, as indicated by a significance value of 0.118. Furthermore, a similar lack of impact was observed concerning GDP. Conversely, the inflation rate and education level variables affected the unemployment rate significantly, with significance values of 0.028 and 0.021, respectively. These empirical results suggest that policymakers should implement strategies to enhance financial inclusion, such as reducing the costs associated with financial services, offering incentives to the informal sector, and promoting education on the significance of financial instruments and institutions.</dc:description>
	<dc:publisher xml:lang="en">Program Magister Ilmu Ekonomi  Pascasarjana Universitas Jambi</dc:publisher>
	<dc:date>2023-12-31</dc:date>
	<dc:type>info:eu-repo/semantics/article</dc:type>
	<dc:type>info:eu-repo/semantics/publishedVersion</dc:type>
	<dc:type xml:lang="en">Peer-reviewed Article</dc:type>
	<dc:format>application/pdf</dc:format>
	<dc:identifier>https://online-journal.unja.ac.id/JES/article/view/27269</dc:identifier>
	<dc:identifier>10.22437/ppd.v11i5.27269</dc:identifier>
	<dc:source xml:lang="en">Jurnal Perspektif Pembiayaan dan Pembangunan Daerah; Vol. 11 No. 5 (2023): Jurnal Perspektif Pembiayaan dan Pembangunan Daerah; 347 - 358</dc:source>
	<dc:source>2355-8520</dc:source>
	<dc:source>2338-4603</dc:source>
	<dc:language>en</dc:language>
	<dc:relation>https://online-journal.unja.ac.id/JES/article/view/27269/17545</dc:relation>
	<dc:rights xml:lang="en">Copyright (c) 2023 Yollit Pertama Sari, Isra Yeni, Dewi Pebriyani, Urmatul Uska Akbar, Hari Setia Putra, Dwi Rani Puspa Artha</dc:rights>
	<dc:rights xml:lang="en">https://creativecommons.org/licenses/by/4.0</dc:rights>
</oai_dc:dc>