The Level and Determinants of Financial Inclusion in Turkey

Article Information
Journal: Business and Economics Research Journal
Title of Article: The Level and Determinants of Financial Inclusion in Turkey
Author(s): Rifat Karakus
Volume: 11
Number: 1
Year: 2020
Page: 147-160
ISSN: 2619-9491
DOI Number: 10.20409/berj.2020.241
The aim of the study is to identify the level of financial inclusion in Turkey and to determine the individual factors affecting the financial inclusion. In addition, factors that hinder the financial inclusion and the individual factors affecting these factors are also investigated. In this study, probit analysis is applied by using the data obtained from World Bank’s 2011 and 2014 Global Findex database. It is determined that saving and credit from financial institutions were increased in Turkey from 2011 to 2014. As a result of the study, it is determined that women have less chance of having a formal account, saving formally and using formal credits. Age has a positive effect on the components of the financial inclusion, but not linear. The positive effect of the education and income level on the financial inclusion is another result of the study. It is established that the barriers of formal account in the financial institution were more prominent in 2014 than in 2011.

Keywords: Financial Inclusion, Global Findex, Probit Regression Analysis

JEL Classification: G20, G21, O16 Full Text