Financial Inclusion for Forcibly Displaced Persons
The Impact of Aid Conditions
DOI:
https://doi.org/10.57947/qrp.v62i4.86Keywords:
forcibly displaced persons, aid for trade, aid conditions, financial inclusion, financial servicesAbstract
Despite limited empirical evidence on the contribution of forcibly displaced persons (FDPs) to host countries' financial inclusion, this research critically examines the direct impact of FDPs inclusion in the financial system and explores the role of international development cooperation in facilitating financial inclusion. By analyzing data from 74 aid recipient countries over a seventeen-year period, employing fixed effects models and a two-step system generalized method of moments estimation technique, the study reveals novel finding that solely including FDPs in the financial system or relying solely on development cooperation does not enhance financial inclusion in developing countries. Rather, the combination of FDPs inclusion and development assistance to the financial sector emerges as an effective strategy for boosting financial inclusion levels. This research provides valuable insights into the design and implementation of policies aimed at fostering financial inclusion for FDPs and highlights the importance of international partnerships in achieving this goal.
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