Inclusivity of financial services and regional growth in the Philippines: A panel data estimation approach

Abstract

The accessibility in basic financial services is a vital component in the growth of regional economies in the Philippines. However, there are certain barriers that hindered the effective and efficient access, as well as utilization of Filipinos to rudimentary services in the financial sector. With this dilemma, we examined how inclusivity in the financial sector affects regional growth of economies thorough a panel regression analysis approach using yearly data (2015-2020). Based on our findings, regional financial inclusion disparities are prevailing amongst urban and rural regions. Moreover, results have shown that inclusivity of the financial sector have a positive influence on growth of regional economies. Significant findings serve as an input for policies that will strengthen public-private partnerships in sustaining and strengthening the financial services in the regions.