Determinants of using formal vs informal financial sector in BRICS group

Mbona, Nokulunga and Major, Klára (2023) Determinants of using formal vs informal financial sector in BRICS group. Finance Research Letters, 55 (Part B). DOI https://doi.org/10.1016/j.frl.2023.103956

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Official URL: https://doi.org/10.1016/j.frl.2023.103956

Abstract

The determinants of the usage of the formal versus the informal financial sector within the BRICS countries are analysed. Regression tree and probit methods are applied to a subset of observations from the 2021 Global Findex database. Results of these different methods are robust and complement each other. The main findings are: (a) Individuals with regular income has higher probability of using the formal financial sector; (b) There is a nonlinear relationship with age and the financial sector channels, individual above 36 are less likely to use the informal channel but are more likely to use the formal channel.

Item Type:

Article

Uncontrolled Keywords:

household finance, financial inclusion

JEL classification:

G21 - Banks; Depository Institutions; Micro Finance Institutions; Mortgages
G23 - Pension Funds; Non-bank Financial Institutions; Financial Instruments; Institutional Investors
G51 - Household Saving, Borrowing, Debt, and Wealth
O16 - Economic Development: Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

Divisions:

Corvinus Doctoral Schools
Institute of Economics

Subjects:

Finance

DOI:

https://doi.org/10.1016/j.frl.2023.103956

ID Code:

8393

Deposited By:

MTMT SWORD

Deposited On:

18 Jul 2023 07:51