Developing a Multidimensional Financial Inclusion Index: A Comparison Based on Income Groups

The aim of our paper is to construct a multidimensional financial inclusion (FI) index measure the level FI in 91 countries across different income groups. In order address research problem, we use principal component analysis method. This approach addresses criticism arbitrary selection weights and reflects degree depth. data are drawn from International Monetary Fund (IMF) Financial Access Survey (FAS), World Development Indicators (World Bank) Global Findex Database during period 2004–2020. first consider so many indicators (13 indicators), belonging three dimensions FI, take into account maximum number aspects related this concept. addition, unlike previous work, considers both developing developed countries, which makes it possible identify differences between them. proposed has some advantages. First, robust, comparable good predictive power tracking household microeconomic (accounts savings). It also well correlated with macroeconomic variables such as literacy rate, poverty, GINI index, real interest rate employers. Second, results clearly show that, country’s grows higher, its higher.