Template-type: ReDIF-Paper 1.0
Author-Name: Anh The Vo
Author-Workplace-Name: Business and Economics Research Group. Ho Chi Minh City Open University. Vietnam.
Author-Name: Loan Thi-Hong Van
Author-Workplace-Name: Business and Economics Research Group. Ho Chi Minh City Open University. Vietnam.
Author-Name: Duc Hong Vo
Author-Workplace-Name: Business and Economics Research Group. Ho Chi Minh City Open University. Vietnam.

Author-Name:
 Michael McAleer
Author-Workplace-Name:
 Department of Quantitative Finance National Tsing Hua University, Taiwan and Econometric Institute Erasmus School of 
	Economics Erasmus University Rotterdam, The Netherlands and Department of Quantitative Economics Complutense University of 
	Madrid, Spain And Institute of Advanced Sciences Yokohama National University, Japan.
Title: Financial inclusion and macroeconomic stability in emerging and frontier markets
Abstract: Financial inclusion, being considered as a key enabler to reducing poverty and boosting prosperity in emerging and frontier markets such as Vietnam, 
	is the process in which individuals and small businesses are provided with an access to useful and affordable financial products and services. The 
	extant literature on the empirical evidence regarding the contribution of financial inclusion to macroeconomic stability is mixed. This paper 
	investigates the linkages between financial inclusion and macroeconomic stability, which has not yet been thoroughly examined in the literature, for 
	22 emerging and frontier economies from 2008 to 2015, with particular focus on a potential optimal level. Using the panel threshold estimation 
	technique, the empirical findings show that financial inclusion, as approximated by the growth rate in the number of bank branches over 100,000 account 
	holders, is found to enhance financial stability under a certain threshold. Financial inclusion is also found to be of benefit to maintaining stable 
	inflation and output growth. Policy implications are also discussed on the basis of the important empirical findings.
Classification-JEL: C62, F65, O16, P45.
Keywords: Financial inclusion; Macroeconomic stability; Panel threshold; Emerging and frontier markets.
Length: 23 pages 
Creation-Date: 2019-01
Number: 2019-01
X-File-Ref: http://america.sim.ucm.es/repec/ucm/ref/doicae1901.txt
File-URL: https://eprints.ucm.es/id/eprint/54660/1/1901.pdf
File-Format: Application/pdf
Handle: RePEc:ucm:doicae:1901