Financial Inclusion and Economic Development: An Analysis under the Brazilian Context
- 1 São Paulo School of Business Administration, São Paulo, Brazil
- 2 São Paulo School of Business Administration, São Paulo, Brazil
- 3 Production Engineering, The Federal University of Santa Catarina, São Paulo, Brazil
Abstract
This paper investigates whether financial inclusion contributes to economic development in Brazil. The research was developed through descriptive statistical analysis, in addition to statistical regression and correlation, using secondary data collected from the Central Bank of Brazil (BACEN), United Nations Development Program (UNDP), and International Monetary Fund (IMF). The study period of the project comprised the years 2004 to 2017. As a result of the work, we found that there is a positive statistical correlation between financial inclusion and economic development in Brazil, demonstrated in the Pearson correlation matrix, indicated by the dependent variable of human development (HDI) and the independent variables, used as a proxy for financial inclusion, the number of bank branches and the currency liquidity index in Brazil. The values found were 0.899 and 0.938 respectively. Thus demonstrating that financial inclusion is an important drive for economic development, promoted through the access, use and quality of formal financial systems, and contributes to e conomic development in Brazil.
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