Citation:

Adhitya Wardhono Ciplis Gema Qori’ah, M. Abd. Nasir, Misbahol Yaqin. "Inclusive Finance and Multidimensional Poverty Reduction in ASEAN: The Role of Financial Institution and Market Access" International Research Journal of Economics and Management Studies, Vol. 5, No. 6, pp. 175-182, 2026. Crossref. http://doi.org/10.56472/25835238/IRJEMS-V5I6P120

Abstract:

This study examines the role of financial development in reducing multidimensional poverty in selected ASEAN countries with low to moderate levels of financial development, namely Indonesia, Malaysia, Thailand, the Philippines, Vietnam, Laos, Cambodia, Timor-Leste, and Myanmar. Using panel data from 2010 to 2024, this research analyzes several dimensions of financial development, including the Financial Inclusion Index, Financial Institution Access Index, and Financial Market Access Index, alongside GDP as a macroeconomic control variable. Multidimensional poverty is measured using the Multidimensional Poverty Index, Headcount Ratio, Income Poverty Gap, and Income Headcount Ratio. The Generalized Method of Moments is employed to address potential endogeneity, dynamic effects, and heterogeneity across countries. The findings indicate that access to financial institutions significantly reduces multidimensional poverty in both the short and long run, while broader financial inclusion has a significant effect only in the long run. In contrast, financial market access does not show a significant poverty-reducing effect. The results suggest that inclusive and institution-based financial development is more effective than market-oriented financial expansion in addressing structural poverty in ASEAN.

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Keywords:

Financial Inclusion, Financial Development, Financial Institution Access, Multidimensional Poverty, ASEAN Economies.