Social safety and behavioral aspects of populations financial inclusion: A multicountry analysis

Information
Title: Social safety and behavioral aspects of populations financial inclusion: A multicountry analysis
Issue: Vol. 13, No 2, 2020
Published date: 06-2020 (print) / 06-2020 (online)
Journal: Journal of International Studies
ISSN: 2071-8330, eISSN: 2306-3483
Authors: Iryna Didenko
Sumy State University

Jolanta Paucz-Olszewska
Rzeszow University f Technology

Serhiy Lyeonov
Sumy State University

Anna Ostrowska-Dankiewicz
Rzeszow University f Technology

Zbigniew Ciekanowski
Pope John Paul II State School of Higher Education in Biala Podlaska
Keywords: financial inclusion, social safety, population, economic development of the country
DOI: 10.14254/2071-8330.2020/13-2/23
DOAJ: https://doaj.org/article/725bcea17c694adfae554a7c8137ea4a
Language: English
Pages: 347-359 (13)
JEL classification: E58, G21, G18, D11
Website: https://www.jois.eu/?621,en_social-safety-and-behavioral-aspects-of-populations-financial-inclusion-a-multicountry-analysis
File https://www.jois.eu/files/23_930_Didenko%20et%20al.pdf
Licenses:
The survey was supported by the Ministry of Education and Science of Ukraine and performed the results of the projects 0118U003569 and 0120U102001.
Abstract

This article aims to investigate the connection between behavioral aspects of populations financial inclusion and the level of social safety. The study was conducted in several stages: collecting the necessary input, determining The Index of socio-safety, selecting the most relevant factors that characterize the behavioral aspects of financial inclusion, determining the functional relationships between The Index of socio-safety and indicators describing critical behavioral issues of financial inclusion. The study involved 26 countries with different levels of economic development, and 18 indicators (10 characterized the behavioral aspects of financial involvement of the population, 8 - the world vectors of social safety). The Index of socio-safety was obtained with the help of PCA. Russian Federation and South Africa have the highest level of The Index among the studied countries. The lowest level of the calculated indicator is in Mozambique and Burkina Faso. Correlation and regression analysis revealed a statistically significant relationship between The Index of socio-safety and an increasing number of ATMs per 100,000 adults, usage of the internet to pay bills or to buy something online and increase the percentage of respondents who report having a credit card.

Bibliography

1. Aqil, M., Ahmed, R. R., Vveinhardt, J., & Streimikiene, D. (2019). Factors influencing the profitability of heavy vehicle industry: a case of Pakistan. Montenegrin Journal of Economics, 15(1), 61-72. https://10.14254/1800-5845/2019.15-1.5.

2. Bagmet, K., & Obeid, H. (2017). Financing social protection in Ukraine and the European Union: current situation and prospects. SocioEconomic Challenges, 1(1), 54-59. https://10.21272/sec.2017.1-06.

3. Bakari, I. H., Idi, A., & Ibrahim, Y. (2018). Innovation Determinants of Financial Inclusion in Top Ten African Countries: a System GMM Approach. Marketing and Management of Innovations, 4, 98-106. http://DOI.org/10.21272/mmi.2018.4-09.

4. Bausch, R. D. (2019). Social capital and the cyclicality of government expenditure. International Journal of Trade and Global Markets, 12(3-4), 250-259. doi: 10.1504/IJTGM.2019.101544.

5. Bilan, Y., Brychko, M., Buriak, A., & Vasilyeva, T. (2019a). Financial, business and trust cycles: The issues of synchronization. Zbornik Radova Ekonomskog Fakultet au Rijeci, 37(1), 113-138. doi: https://DOI.org/10.18045/zbefri.2019.1.113.

6. Bilan, Y., Lyeonov, S., Lyulyov, O., & Pimonenko, T. (2019b). Brand management and macroeconomic stability of the country. Polish Journal of Management Studies, 19(2), 61-74. doi: 10.17512/pjms.2019.19.2.05.

7. Bilan, Y., Lyeonov, S., Vasylieva, T., & Samusevych, Y. (2018). Does tax competition for capital define entrepreneurship trends in Eastern Europe?. Online Journal Modelling the New Europe, 27(1), 34-66. doi: 10.24193/OJMNE.2018.27.02.

8. Bilan, Y., Rubanov, P., Vasylieva, T., & Lyeonov, S. (2019c). The influence of industry 4.0 on financial services: Determinants of alternative finance development. Polish Journal of Management Studies, 19(1), 70 – 93. doi: 10.17512/pjms.2019.19.1.06.

9. Bilan, Y., Vasilyeva, T., Lyulyov, O., & Pimonenko, T. (2019f). EU vector of Ukraine development: linking between macroeconomic stability and social progress. International Journal of Business & Society, 20(2), 433 – 450.

10. Brychko, M. M. (2013). Governance of stakeholder’s financial relationships: Evidence fom Ukrainian banking sector. Corporate Ownership and Control, 11(1), 706-714.

11. Brychko, M., & Olejarz, T. (2019). Trust cycle of the finance sector and its determinants: The case of Ukraine. Journal of International Studies, 12(4), 300 - 324. doi: 10.14254/2071-8330.2019/12-4/20.

12. Buriak, A., Lyeonov, S., & Vasylieva, T. (2015). Systematically Important Domestic Banks: An Indicator-Based Measurement Approach for the Ukrainian Banking System. Prague Economic Papers, (6), 715-728. doi: 10.18267/j.pep.531.

13. Buriak, A., Vozňáková, I., Sułkowska, J., & Kryvych, Y. (2019). Social trust and institutional (Bank) trust: Empirical evidence of interaction. Economics & Sociology, 12(4), 116-332. doi: 10.14254/2071-789X.2019/12-4/7.

14. Caplinska, A., & Ohotina, A. (2019). Analysis of financial literacy tendencies with young people. Entrepreneurship and Sustainability Issues, 6(4), 6. doi: https://DOI.org/10.9770/jesi.2019.6.4(13)

15. Ch, A. R., & Semenog A.Y. (2017). Non-bank financial institutions activity in the context of economic growth: cross-country comparisons. Financial Markets, Institutions and Risks, 1(2), 39-49. doi: 10.21272/fmir.1(2).39-49.2017.

16. Churilova, E., Salin, V., Shpakovskaya, E., & Sitnikova, O. (2019). Influence of world social and economic indicators’ interlinkage on the development of human potential. Journal of International Studies, 12(4), 79 - 99. DOI:10.14254/2071-8330.2019/12-4/6

17. Cortés-Sánchez, J. D., & Rivera, L. (2019). Mission statements and financial performance in Latin-American firms. Business: Theory and Practice, 20, 270-283. doi: https://DOI.org/10.3846/btp.2019.26.

18. Dave, H. (2017a). An Inquiry on Social Issues – Part 1. Business Ethics and Leadership, 1(2), 78 – 87. doi: 10.21272/bel.1(2).78-88.2017.

19. Dave, H. (2017b). An Inquiry on Social Issues − Part 2. Business Ethics and Leadership, 1(3), 45 – 63. doi: 10.21272/bel.1(3).45-63.2017.

20. Demirguc-Kunt, A., Klapper, L., & Singer, D. (2017). Financial inclusion and inclusive growth: A review of recent empirical evidence. The World Bank. Retrieved from URL: http://documents.worldbank.org/curated/en/403611493134249446/pdf/WPS8040.pdf.

21. Djajanto, L., Afiatin, Y., & Haris, Z. A. (2019). The impact of relationship marketing on customer value, satisfaction and loyalty: evidence from banking sector in Indonesia. International Journal of Economic Policy in Emerging Economies, 12(2), 207-214.

22. Djalilov, K., Vasylieva, T., Lyeonov, S., & Lasukova, A. (2015). Corporate social responsibility and bank performance in transition countries. Corporate Ownership and Control, 13(1CONT8), 879-888. doi: 10.22495/cocv13i1c8p7.

23. García, M. J. R. (2016). Can financial inclusion and financial stability go hand in hand. Economic Issues, 21(2), 81-103.

24. Greco, F. (2017). The analysis of choice in the decision-making process of the agents. Business ethics and leadership, (1, Issue 4), 22-27. doi: 10.21272/bel.1(4).22-27.2017

25. Grenčíková, A., Bilan, Y., Samusevych, Y., & Vysochyna, A. (2019). Drivers and inhibitors of entrepreneurship development in central and eastern European countries. In Proceedings of the 33rd International Business Information Management Association Confe

26. Grybaitė, V., & Stankevičienė, J. (2018). An empirical analysis of factors affecting sharing economy growth. Oeconomia Copernicana, 9(4), 635-654. doi: https://DOI.org/10.24136/oc.2018.031.

27. Gupta, R. (2017). Socioeconomic challenges and its inhabitable global illuminations. SocioEconomic Challenges, 1(1), 81-85. doi: 10.21272/sec.2017.1-10.

28. Hadbaa, H., & Boutti, R. (2019). Behavioral Biases Influencing the Decision Making of Portfolio Managers of Capital Securities and Traders in Morocco. Financial Markets, Institutions and Risks, 3(1), 92-105. doi: http://DOI.org/10.21272/fmir.3(1).92-105.2

29. Heng, D. (2015). Impact of the new financial services law in bolivia on financial stability and inclusion. IMF Working paper, 15/ 267. DOI:10.5089/9781513598420.001

30. Kaasa, A. (2019). Determinants of individual-level social capital: Culture and personal values. Journal of International Studies, 12(1), 9-32. doi: 10.14254/2071- 8330.2019/12-1/1

31. Katan, L.; Masiuk, I.; Oliynik, T.; Oliynik, O., & Zablotskyi, V. (2019). Ensuring complex security of the financial flows movement in the national economy system. Journal of Security and Sustainability Issues, 9(1): 39-50. doi: http://doi.org/10.9770/jss

32. Khan, K., Qingyang, W., & Khurshid, A. (2017). Causal relationship between monetary policy and the stock market: a bootstrap rolling window approach. Financial Markets, Institutions and Risks, 1(4), 5-15. doi: 10.21272/fmir.1(4).5-15.2017.

33. Kliestik, T., Valaskova, K., Lazaroiu, G., Kovacova, M., & Vrbka, J. (2020). Remaining Financially Healthy and Competitive: The Role of Financial Predictors. Journal of Competitiveness, 12(1), 74-92. doi: 10.7441/joc.2020.01.05

34. Klimontowicz, M. (2019). The role of banks innovativeness in building sustainable market efficiency: the case of Poland. Entrepreneurship and Sustainability Issues, 7(1), 525-539.doi: doi: 10.9770/jesi.2019.7.1(37)

35. Kolomiiets, U., & Petrushenko, Y. (2017). The human capital theory. Encouragement and criticism. SocioEconomic Challenges, 1, Iss. 1, 77-80. doi: 10.21272/sec.2017.1-09.

36. Korcsmáros, E., & Šimova, M. (2018). Factors affecting the business environment of SMEs in Nitra region in Slovakia. Oeconomia Copernicana, 9(2), 309-331. doi: https://doi.org/10.24136/oc.2018.016.

37. Kostyuchenko, N., Starinskyi, M., Tiutiunyk, I., & Kobushko, I. (2018). Methodical Approach to the Assessment of Risks Connected With the Legalization of the Proceeds of Crime. Montenegrin Journal of Economics, 14(4), 23-43. doi: 10.14254/1800-5845/2018.1

38. Leonov, S., Frolov, S., & Plastun, V. (2014). Potential of institutional investors and stock market development as an alternative to households’ savings allocation in banks. Еkonomichniy chasopys-ХХІ, 11-12, 65-68. Retrieved from URL: http://soskin.info/u

39. Leonov, S., Yarovenko, H, Boiko, A.,. & Dotsenko, T. (2019). Information system for monitoring banking transactions related to money laundering. CEUR Workshop Proceedings, 2422, 297-307. Retrieved from URL: http://ceur-ws.org/Vol-2422/paper24.pdf.

40. Levchenko, V., Boyko, A., Bozhenko, V., & Mynenko, S. (2019). Money laundering risk in developing and transitive economies: analysis of cyclic component of time series. Business: Theory and Practice, 20, 492-508. doi: doi.org/

41. 10.3846/btp.2019.46.

42. Logan, W., & Esmanov, O. (2017). Public financial services transparency. Business Ethics and Leadership, Vol. 1, Issue 2, 62-67. doi: 10.21272/bel.1(2).62-67.2017.

43. Louis, R. (2017). A new economic order for global prosperity. SocioEconomic Challenges, 1, Iss. 2, 52-58. doi: 10.21272/sec.1(2).52-59.2017.

44. Lyeonov, S., & Liuta, O. (2016). Actual problems of finance teaching in Ukraine in the post-crisis period. The Financial Crisis, 145-152. doi: 10.1007/978-3-319-20588-5_8.

45. Makarenko, I. O., & Sirkovska, N. (2017). Transition to sustainability reporting: evidence from EU and Ukraine. Business Ethics and Leadership, Volume 1, Issue 1, 16 – 24. doi: 10.21272/bel.2017.1-02.

46. Matošková, J. (2019). Why employees share their knowledge. Business Administration and Management, 22 (2), 83-96. doi: 10.15240/tul/001/2019-2-006

47. Mihalčová, B., Gallo, P., & Štofová, L. (2018). Gender stereotypes at managerial positions in selected public institution. Administration & Public Management Review, 30, 96 - 108. doi: 10.24818/amp/2018.30-07

48. Mishchuk, H., Samoliuk, N., & Bilan, Y. (2019). Measuring social justice in the light of effectiveness of public distributive policy. Administration & Public Management Review, 32, 63 - 76. doi: 10.24818/amp/2019.32-05.

49. Morscher, C., Horsch A., & Stephan J. (2017). Credit Information Sharing and Its Link to Financial Inclusion and Financial Intermediation. Financial Markets, Institutions and Risks 1(1), 22-33. doi: 10.21272/fmir.1(3).22-33.2017.

50. Munk, M., Pilkova, A., Benko, L., & Blažeková, P. (2017). Pillar 3: market discipline of the key stakeholders in CEE commercial bank and turbulent times. Journal of Business Economics and Management, 18(5), 954-973. doi: 10.3846/16111699.2017.1360388

51. Němcová, J., & Staňková, P. (2019). Factors influencing consumer behaviour of generation Y on the Czech wine market. Marketing and Trade, 4, XXII, 145 – 161. doi: 10.15240/tul/001/2019-4-010.

52. Nocoń, A., & Pyka, I. (2019). Sectoral analysis of the effectiveness of bank risk capital in the Visegrad Group countries. Journal of Business Economics and Management, 20(3), 424-445. doi: 10.3846/jbem.2019.9606.

53. Packard, T., Gentilini, U., Grosh, M., O’Keefe, Ph., Palacios, R., Robalino, R., & Santos, I. (2019). Protecting All Risk Sharing for a Diverse and Diversifying World of Work. Human Development Perspectives. Washington, DC: World Bank, 293. doi: 10.1596/9

54. Piatek, T. (2018). Work Safety Management – Social and Educational Context. Marketing and Management of Innovations, 4, 66-72. doi: http://doi.org/10.21272/mmi.2018.4-06.

55. Poliakh, S. (2018). The consumer protection as a driver of innovative development: case study for consumers of financial services. Marketing and Management of Innovations, 2, 378-387. doi: 10.21272/mmi.2018.2-29.

56. Próchniak, M., & Szyszko, M. (2019). The similarity of European central banks in terms of transparency and effectiveness. Equilibrium. Quarterly Journal of Economics and Economic Policy, 14(3), 385-404. doi: 10.24136/eq.2019.018

57. Pryima, S., Dayong, Y., Anishenko, O., Petrushenko, Y., & Vorontsova, A. (2018). Lifelong learning progress monitoring as a tool for local development management. Problems and Perspectives in Management, 16(3), ap1-13. doi: 10.21511/ppm.16(3).2018.01

58. Rehman, A. (2020). Innovation and Management by Regional Rural Banks in Achieving the Dream of Financial Inclusion in India: Challenges and Prospects. Marketing and Management of Innovations, 1, 222-234. doi: http://doi.org/10.21272/mmi.2020.1-18.

59. Rudiawarni, F. A., Narsa, I. M., & Tjahjadi, B. (2020). Are emotions exacerbating the recency bias?: An experimental study. International Journal of Trade and Global Markets, 13(1), 61-70. doi: https://DOI.org/10.1504/IJTGM.2020.104913.

60. Shapovalova, I., Piiurenko, I., Husarina, N., Petrovska, S., & Kravchenko, M. (2019). Process Factors of System Security of Trading Enterprises. Journal of Security & Sustainability, Issues, 9(1), 211 - 225. doi: http://doi.org/10.9770/jssi.2019.9.1(16).

61. Shvindina, H. (2019). Coopetition as an emerging trend in research: perspectives for safety & security. Safety, 5(3), 61. doi: https://DOI.org/10.3390/safety5030061.

62. Singh, S. N. (2018). Regional Disparity and Sustainable Development in North-Eastern States of India: A Policy Perspective. SocioEconomic Challenges, 2(2), 41-48. doi: 10.21272/sec.2(2).41-48.2018.

63. Sisodia, G. S., Ibanez, A., & Venugopalan, M. (2019). The economic uncertainty via coups on Fijian economic growth: modelling the effect over varying sample sizes and periods. International Journal of Economic Policy in Emerging Economies, 12(6), 578-605.

64. Stefko, R., Jencova, S., Vasanicova, P., & Litavcova, E. (2019). An evaluation of financial health in the electrical engineering industry. Journal of Competitiveness, 11(4), 144 - 160. doi: https://DOI.org/10.7441/joc.2019.04.10.

65. Trębska, J. (2018). Polish households’ savings in the financial intersectoral linkages. Equilibrium. Quarterly Journal of Economics and Economic Policy, 13(2), 307-329. doi: 10.24136/eq.2018.016.

66. Vasileva, T., & Lasukova, A. (2013). Empirical study on the correlation of corporate social responsibility with the banks efficiency and stability. Corporate ownership & Control, 10(4), 86 - 93. doi: 10.22495/cocv10i4art7.

67. Vasilyeva, T., Bilan, S., Bagmet, K., & Seliga, R. (2020). Institutional development gap in the social sector: Cross-country analysis. Economics & Sociology, 13(1), 271 - 294. doi: 10.14254/2071-789X.2020/13-1/17.

68. Vasilyeva, T., Kuzmenko, O., Bozhenko, V., & Kolotilina, O. (2019). Assessing the dynamics of bifurcation transformations in the economy. SHS Web of Conferences, Vol. 65, 04006, 1 - 6. doi: 10.1051/shsconf/20196504006.

69. Vasilyeva, T., Sysoyeva, L., & Vysochyna, A. (2016). Formalization of factors that are affecting stability of Ukraine banking system. Risk governance & control: financial markets & institutions, 6(4), 7-11. doi: 10.22495/rcgv6i4art1.