Role of social sustainability for financial inclusion and stability among Asian countries
International Journal of Social Economics
ISSN: 0306-8293
Article publication date: 12 April 2022
Issue publication date: 9 August 2022
Abstract
Purpose
Asia is the largest and most densely inhabited region in the world. Despite exhibiting an extremely expeditious economic growth, the majority of the world population categorized as poor resides in Asia, with more than a billion people financially excluded. This study aims to assess how social sustainability (SS) may increase financial inclusion (FI) and maintain financial stability (FS) in Asia.
Design/methodology/approach
Established on the stakeholder theory, the study analyzed the association among SS, FI and FS in Asia, employing a generalized method of moment’s estimation. The mediation of FI was also investigated in the relationship between SS and FS. Moreover, this study has analyzed the alternative proxies for the variables of interest to ensure dynamic results.
Findings
The findings point toward a positive association among SS, FI and FS. Furthermore, FI is observed to be undertaking a partial mediating role between SS and FS.
Practical implications
This study emphasizes that both SS and FI have individual parts in the amelioration of FS in Asia, whereas previous studies implied that FI is a mere tool for stimulating SS. Hence, Asian policymakers must keep these outcomes in mind due to their simultaneous contribution to FS.
Originality/value
The relationship between SS, FI and FS has received little attention in the literature. No previous study has deduced that increasing SS may instigate an increase in FI and FS. Additionally, quite contrary to previous studies that relied on narrow indicators, this study develops a broad measurement of SS by considering a wide range of crucial indicators for a sustainable society.
Keywords
Acknowledgements
The authors thank Mr Bilal Ahsin (Universiti Malaysia Sarawak) for many helpful comments and discussions. The authors also appreciate the comments and recommendations offered by three anonymous reviewers and the editor that indeed added to the value and readability of the paper.
Funding: The authors gratefully acknowledge financial support from Universiti Malaysia Sarawak Grant No. F01/PGRG/1909/ 2019. The usual disclaimer regarding errors and omissions applies.
Conflict of interest: The authors declare no conflict of interest to disclose.
Citation
Malik, A.H., Jais, M.B., Md Isa, A.H. and Rehman, A.U. (2022), "Role of social sustainability for financial inclusion and stability among Asian countries", International Journal of Social Economics, Vol. 49 No. 9, pp. 1324-1348. https://doi.org/10.1108/IJSE-08-2021-0458
Publisher
:Emerald Publishing Limited
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