Vol. 9 No. 2 (2022): In Progress
Articles

Financial Exclusion and Poverty Reduction in Benin

Medard Attoukou
African School of Economics, Benin.
Karim Nchare
African School of Economics, Benin.

Published 2022-09-13

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Keywords

  • Benin, Poverty, Propensity score matching, Financial exclusion.

How to Cite

Attoukou, M. ., & Nchare, K. (2022). Financial Exclusion and Poverty Reduction in Benin. Asian Journal of Economics and Empirical Research, 9(2), 121–131. https://doi.org/10.20448/ajeer.v9i2.4146

Abstract

By analyzing some factors related to the various constraints faced by unbanked individuals, this study explores the determinants associated with individuals without access to common financial services in Benin. It also examines the impact of the lack of access to financial services on poverty using the World Bank’s Global Findex database for 2011, 2014, and 2017. Using a probit model, we found a positive and significant relationship between financial exclusion and lack of documentation, expensive financial services, distance from financial institutions, and lack of trust in financial institutions. Moreover, individual characteristics, such as age, education level, religion, gender, and employment status are significantly associated with financial exclusion. Using a Heckman sample selection model, we show that financial exclusion in Benin has a positive and significant effect on poverty. These results are vindicated using propensity score matching (PSM) for robustness checks.

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