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on Microfinance |
| By: | Mesbah Fathy Sharaf (University of Alberta); Abdelhalem Mahmoud Shahen (Imam Mohammad Ibn Saud Islamic University (IMSIU)); Mansour Abdullateef Alharaib (Imam Mohammad Ibn Saud Islamic University (IMSIU)) |
| Abstract: | This study explores the evolution, determinants, and disparities of digital financial inclusion (DFI) in Saudi Arabia from 2011 to 2021, with a focus on the post-COVID-19 period. Using micro-level cross-sectional data from the World Bank’s Global Findex database, we apply a multivariate Probit regression to examine the drivers of DFI across demographic, socioeconomic, and infrastructural dimensions. While Saudi Arabia has made notable progress in digital finance, gaps persist among women, the less educated, low-income groups, and the unemployed. Access to mobile phones and internet connectivity significantly enhances DFI, underscoring the role of digital infrastructure. As the first systematic analysis of DFI in Saudi Arabia using Global Findex data, this study provides timely insights into the inclusive digital transformation process. Importantly, it highlights how expanding equitable access to digital financial services can support broader goals of socioeconomic sustainability, reduce structural inequalities, and contribute to the Vision 2030 agenda. The findings offer practical guidance for policymakers seeking to design sustainable, inclusive financial ecosystems in the digital era. |
| Date: | 2025–07–20 |
| URL: | https://d.repec.org/n?u=RePEc:erg:wpaper:1783 |
| By: | Rodrigo Cuenca-de-Armas (Department of Economics, Universitat Jaume I, Castellón, Spain); Luisa Alamá-Sabater (Department of Economics and IIDL, Universitat Jaume I, Castellón, Spain); Miguel Ángel Márquez (Department of Economics, Universidad de Extremadura, Spain); Emili Tortosa-Ausina (IVIE, Valencia and IIDL and Department of Economics, Universitat Jaume I, Castellón, Spain) |
| Abstract: | This paper examines the complex interrelationships between bank branches, employment, and population dynamics in Spanish municipalities from 2008 to 2019. Using a simultaneous equations model based on Carlino and Mills’ (1987) framework, we analyse data from 8, 014 municipalities to investigate whether people follow jobs and financial services, whether jobs follow people and financial services, and whether financial services follow people and jobs. Our findings reveal a bidirectional relationship between population and employment, with employment following population more strongly than vice versa, particularly in urban areas. We also find a bidirectional relationship between population and bank branches, with bank branches following population more intensely than population following bank branches. Interestingly, no significant relationship was observed between employment and bank branches. Furthermore, our results indicate that bank branch closures influenced depopulation in certain territories, though banks primarily responded to rather than caused population movements. These decisions were not significantly influenced by the percentage of elderly residents in municipalities. Additionally, we find that rural and intermediate municipalities with higher per capita income gained population during the study period. Our research contributes to the literature on financial inclusion, left-behind places, and regional development by providing empirical evidence on the role of banking services in economic activity and population dynamics in Spain. |
| Keywords: | bank branches; depopulation; financial inclusion; left-behind places; simultaneous equations |
| JEL: | G21 R23 R11 O18 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:jau:wpaper:2026/04 |