Welcome to the 2018 AFS Annual Meeting, being held this year, in conjunction with FPA in Chicago!
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Tuesday, October 2 • 9:00am - 9:50am
B3b - Trust and Financial Inclusion

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This study examines the role of trust in financial inclusion around the world. Using financial inclusion measures from the Global Findex database and measure of trust from the World Values Survey, the study finds evidence that trust is important for explaining cross-country differences in account ownership and savings, the use of credit card, forms of borrowing, and the prevalence of mobile technology use in financial transactions. Specifically, trust encourages formal financing and the use of mobile technology; the relationship is also evident among wealthier economies. The trust-financial inclusion relation is robust to alternative specifications. When trust is instrumented by social diversity and religious measures, the 2SLS regression results confirm that the relationship is not driven by reverse causality. The findings confirm that trust could be an important determinant for access to formal financing.

Author(s):  Xiaoyan Xu


Xiaoyan Xu

Paul Larsen Consulting

Tuesday October 2, 2018 9:00am - 9:50am CDT
Michigan 1C