Impact of Financial Inclusion on Human Development Indicators for Women in Mexico

Abstract

Financial inclusion has become a strategic factor to reduce poverty, income inequality, and achieve sustainable economic growth. The objective of this work is to study the impact of financial inclusion (access, owning, and usage of financial services dimensions) on women‘s human development indicators (health, education, and standard of living) in the Federal States of Mexico. The study sample is made up of 448 observations during the 2007-2020 period, that is, 14 units of analysis per Federal State. The econometric results show that access to financial services increases the Human Development Index [HDI] and the education sub-index for women. The owning of financial products favors the HDI and its education, health and standard of living components for women; particularly, credit financial instruments favor human development indicators for women. The usage of the financial services component increases the HDI as well as the education and standard of living sub-indices. This study has practical implications for those responsible for designing and approving public policies and regulations in Mexico regarding financial inclusion and human development from a gender perspective.