Determinants of Financial Inclusion in the Western Balkans

Abstract

The aim of this research is to provide new empirical evidence on the determinants of financial inclusion in the selected Western Balkan economies using a panel data method between 2004 and 2021. This research covered six Western Balkans countries based on the data that was available. The results highlight the significance of income, quality of legal system, number of internet users, and decline of unemployment rate in promotion of financial inclusion across the Western Balkan countries. In conclusion, the study reveals that building a financially inclusive society in the Western Balkans would require reducing unemployment, increasing income and improving ITC communication infrastructure, and improving the legal system. Likewise, it is indicated that policy makers should adopt more modifications and changes in existing economic policies in order to achieve a higher level of financial inclusion.