JCI-JSC-WP-2021-04: Financial Development and Inclusion on Saving Behavior in ASEAN LDC: Case of Cambodia
Publication date: December 2021 | Length of paper: 28 pages | ISBN: 978-967-5492-63-1
In this paper, we explore the impacts of financial intermediation and financial inclusiveness on saving behavior of developing economy such as Cambodia using individual data from Global Findex database in 2017. We explore the impact of financial intermediation such as bank deposits, mobile banking, credit cards and debit cards on the saving behavior individuals in Cambodian economy. Particularly, we examine if increasing financial intermediation to vulnerable populations at the poorest segment of society will increase their saving behavior. The impact of financial inclusion in terms of a shift from informal to formal savings and investments through financial institutions will have a strong impact on resource mobilization for productive investment in the domestic economy. The results indicate that financial intermediation has positive impact on overall savings and also savings at banks and financial institutions. Particularly, we observed that individuals having a direct account with a bank and financial institution increases the probability of saving at the bank and financial institution. We also observed that financial innovation such as debit cards has positive impact on the probability of saving in the economy.
Key words: Financial Inclusion, Formal Savings, Financial Intermediation
JEL Classification: D14, D18, G21, G28, I25, L26
Authors
The JCI-JSC Working Paper series is published to disseminate preliminary research findings and stimulate intellectual discourse on wide-ranging public policy issues, ranging from security to sustainability. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the Jeffrey Cheah Institute on Southeast Asia and the Jeffrey Sachs Center on Sustainable Development.
Related Publications
JCI-JSC-PB-2022-01: The New Dynamism of East Asia and Asean: New Trade Institutions in FTAs and the ‘Living Agreement’ of RCEP
The authors examine how the ‘build-in’ institutional feature within the RCEP addresses the region's socioeconomic issues as a ‘living’ trade agreement.
JCI-JSC-WP-2022-01: Global Value Chain, Cities and Urban Amenities: Next Stage of Growth for ASEAN and East Asia
The paper highlights the importance of urban amenities to retain and maintain skill labour in the key cities to drive economic growth.
JCI-JSC-WP-2021-04: Financial Development and Inclusion on Saving Behavior in ASEAN LDC: Case of Cambodia
In this paper, we explore the impacts of financial intermediation and financial inclusiveness on saving behavior of developing economy such as Cambodia using individual data from Global Findex database in 2017.
Related Events
As domestic and external demand recover, the Malaysian economy is projected to grow by 5.8% in 2022. However, this projected growth may be dampened by the rise of new COVID-19 variants, supply disruptions, and limited fiscal space. Rising vulnerabilities both at household and firm levels pose concerns to the country’s recovery path. Uncertainties abound for the Malaysian economy in 2022.
As domestic and external demand recover, the Malaysian economy is projected to grow by 5.8% in 2022. However, this projected growth may be dampened by the rise of new COVID-19 variants, supply disruptions, and limited fiscal space. Rising vulnerabilities both at household and firm levels pose concerns to the country's recovery path. Uncertainties abound for the Malaysian economy in 2022. ASLI of Sunway University brings to you a two-part panel discussion for us to understand how to navigate the Malaysian economy in these trying times
World class academics, economists, and policymakers present their papers on “Growth, Resilience and Sustainability: Asian Dynamism in an Uncertain World”.