Abstract:

This study evaluates the impact of financial inclusion on poverty reduction in Morocco using an additive approach. The results show that financial inclusion has a negative effect on poverty, suggesting its potential as a key strategy for poverty reduction. The study also highlights that financial inclusion can have differentiated effects on the most vulnerable segments and disadvantaged populations, requiring particular attention in policy formulation. The results align with previous studies by Saha and Qin (2023) and Omar and Inaba (2020), which found a significant negative association between financial inclusion and poverty in developing countries. The effectiveness of financial inclusion is influenced by equal access to financial services. The study emphasizes the importance of improving equality of access to financial services to maximize the effectiveness of financial inclusion. The study also highlights the need for policies to foster financial inclusion and targeted measures to build the capacity of poor households to make efficient use of financial services. Finally, the study emphasizes the importance of monitoring the effects of financial inclusion on poverty in Morocco and adapting the national strategy accordingly to meet poverty reduction targets. Morocco is committed to promoting digital financial services and dematerializing social aid transfers for populations affected by climate shocks.

Keywords:

Financial inclusion, poverty, impact evaluation, PSM (propensity score matching).

JEL classification:

G21; I32; O16; C21.

How to Cite:

Hicham Ouakil, Hicham Assalih, Hicham EL Ouazzani, Abdelhamid Moustabchir. Assessing the effect of Financial Inclusion on Poverty Reduction: A PSM Analysis in Morocco. [ref]: vol.22.2024. available at: https://refpress.org/ref-vol22-a20/