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Item Restricted Financial inclusion, the inflation tax, and consumption inequality in the Philippines(2017) Arcilla, Angelo Rafael E. ; Tejano, Paolo Lorenzo ; Mendoza, Maria Nimfa F.High inflation acts as a regressive consumption tax, significantly impacting the poor. Including the poor in the formal financial system can help them weather the effects of high inflation. Financial inclusion allows individuals to augment their nominal money balances by saving and earning on deposits, as well as by taking out loans. Access to formal financial services has the potential to increase the purchasing power of the poor and reduce the inequality of consumption. This study uses panel regression analysis to determine the effects of financial inclusion on the inequality of consumption through the inflation channel. The researchers find that: (1) given low levels of financial inclusion, higher levels of inflation result in higher levels of consumption inequality; (2) given high levels of financial inclusion, higher levels of inflation result in lower levels of consumption inequality; (3) at all levels of inflation, financial inclusion reduces consumption inequality; and (4) at higher levels of inflation, financial inclusion reduces consumption inequality by a larger amount.Item Restricted Impact of remittances on financial inclusion in the Philippine context(2018-06) Cacnio, Bianca Patricia C. ; Magtoto, Sofia Q. ; Escresa, Laarni C.This paper contributes to the literature on financial inclusion in the Philippines by investigating the impact of remittances. The Philippines is the third highest remittance receiving country in the world, with an inflow of around $28B in 2015, and $31B in 2017. Using individual-level cross-sectional survey data from the National Baseline Survey on Financial Inclusion of 2015 and controlling for various socio-demographic characteristics, the use of key financial services, mainly savings, credit, and insurance, by individuals is examined to see if this is affected by receiving remittances. It is found that remittances have a positive effect on the use of financial services in general, though this impact is most significant in savings and a bit less so in insurance. The effect of remittances on borrowing is not found to be significant. The results of this study may provide useful inputs and information for future policy and strategies for broader financial inclusion.Item Restricted The effect of financial inclusion on household welfare(2017-05-12) Maliwat, Carl Francis C.; Pajaron, Marjorie C.The Philippines has experienced remarkable economic growth over the last few years, a growth that has not been felt by the vast majority of Filipinos. Discourse on the role of the financial sector in promoting inclusive economic growth has gained momentum in recent years, and the matter of financial inclusion has risen to prominence among government policymakers and the private financial sector. In this study, I aimed to determine the impact of financial inclusion, measured in terms of household expenditures on financial services and incomes from the use of financials services, on household welfare. I employed multiple econometric models, using expenditures on food, clothing, rent and utilities, durable and non-durable household goods, health, transportation, communication, recreation, education, and other goods and services as proxy indicators for household welfare, and a set of conventional welfare indicators and the use of different financial services among households as financial inclusion indicators. I found that household expenditures on financial services and incomes from the use of financial services increases different kinds of household expenditures, signifying increases in household welfare in terms of food, clothing, rent and utilities, durable and non-durable household goods, health, transportation, communications, recreation, education, and other goods and services. Moreover, I proved empirically that the use of financial services reduces the probability of household poverty, providing stronger support to the assertion that financial inclusion improves household welfare. Furthermore, I found empirical evidence that financially included households have higher levels of expenditures than financially excluded households using treatment effects estimation.Item Restricted Financial choice of disaster affected Filipinos(2018-12) Espiritu, Johncent M. ; Roque, Harold V. ; Magno, Cielo D.Throughout the years, the Philippines showed vulnerability to natural disasters because of its geographical location. Literatures showed that natural disasters affect individual decisions at several points in time. Simultaneously, low financial literacy and low financial inclusion rate among Filipinos served as a huge problem for the Philippine policymakers. This study tested the effect of environmental damages to Filipinos with their financial decisions in the basis of intertemporal choice. This study decomposed financial choice into the decision to avail of an account and exact amount of transacted financial service. The models are implemented through the usage of clustered standard errors and multilevel mixed effects. Results showed that natural disasters mainly affect the volume of financial service that Filipinos, both at the lag and current effects. On the other hand, the factors affecting the decision to avail of an account were purely based on the Filipinos’ sociodemographic characteristics. Concludingly, the researchers suggested that the financial inclusion initiatives of the government shall be implemented simultaneously with the strengthening of the disaster resilience programs of the country.Item Restricted Are you included? determinants of financial inclusion in the Philippines A probit analysis(2016-06) Fernandez, Jose Carlo S.; Santos, Coreen Giselle B. ; Reside, Renato Jr. E.Financial inclusion has been gaining focus in policy-making over the past decade. Being a driver of inclusive growth, it promotes a more equal income distribution and creates more opportunities for the poor. The study estimates the marginal effects of different socio-economic variables on a household’s decision to be included in the financial system. It employs a probit model, where the dependent variable is proxied by whether or not the household uses financial services. A financially included household is denoted by 1, and 0 otherwise. Extended models that took into account the occupation of the household head were also constructed. The significant factors found to increase the likelihood for a household to be financially included are the ratio of banks and ATMs to the population, the household head's age, sex, marital status and years of schooling, the household's income quintile and whether or not the household is located in an urban area has internet connection and cellular phones. On the other hand, those that have a negative and significant effect are cash receipts from abroad, domestic cash supports and the number of household members. For the extended models, it was found that farmers, fishermen, trades and crafts workers, laborers and unskilled workers have lower chances to be financially included, while professionals have higher chances of inclusion. Lastly, the ratio of cooperatives to the population was found to have a negative marginal effect.