Determinants of financial inclusion in Namibia: An analysis of the gender
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Date
2020
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University of Namibia
Abstract
There is a consensus between many development economists that a well-developed and inclusive
financial system promotes inclusive growth and better livelihoods. Yet the size of the financially
excluded adults in the world is still enormous. Generally, women are disproportionately excluded
from formal financial systems and constitute more than half of the world 's unbanked population.
The gender gap is systematic worldwide and persistent across all income groups in developing
countries. However, it is interesting to observe that more eligible men are financially excluded than
eligible womeri in Namibia. Motivated by this observation, in addition to limited evidence on
gender gap in financial inclusion, this paper examines the determinants of financial inclusion in
Namibia, with particular focus on what explains the observed gender gap.
' We employ the probit model to identify the determinants of financial inclusion and the Fairlie
decomposition to examine the contribution of these factors to the gender gap in financial inclusion.
The results suggest that women are more financially included, however, the observed gap is
insignificant. We find that individual characteristics are important determinants of financial
inclusion in Namibia. Financial literacy, educational attainment and proximity to financial
institutions contribute positively to the observed gender gap. Thus, any policy action geared
towards improving the level of financial inclusion of the disadvantage women should focus on
enhancing their level of education, financial 'knowledge and access (proximity) to financial
institution. However, the contribution of other individual and household characteristics cannot be
completely ignored
Description
A thesis submitted in partial fulfilment of the requirements for the Degree of Master of Business Administration Finance
Keywords
Development economists, Inclusive financial system, Gender Gap, Namibia, University of Namibia, Financial inclusion