About the Event:
Join us for the workshop which is organized within the EURASIA project, funded by the Norwegian Ministry of Foreign Affairs.
During the workshop the presenters will share and discuss the research results of the paper “Financial Inclusion, Over-indebtedness and Multidimensional Poverty: the Case of Armenia During 2016-2018.”
Later there will be a discussion on course development “Financial Inclusion and Sustainable Development.”
For joining the event, please send the confirmation to [email protected] by July 14th.
Please note that the workshop does not apply to students.
Abstract of the paper:
This paper studies the relationship between financial inclusion and multidimensional poverty in Armenia, using a household level (country-representative) dataset for the period of 2016-2018. The paper identifies three key dimensions for financial inclusion: namely, access to finance, savings behavior and financial literacy. For multidimensional poverty, the identified dimensions are income, education, health, living standards and employment. The paper focuses on the possible negative outcome of financial inclusion – over-indebtedness – and its link to multidimensional poverty. The key findings from contributions to adjusted headcount ratio are the following: among the identified dimensions health is the main contributor to multidimensional poverty. Income dimension seems to have a rather moderate impact on poverty. The paper results show that better access to finance, savings from monthly income and financial literacy have the potential to alleviate poverty. However, an excess of credit lines is of particular damage to vulnerable households by increasing the risk of deprivation. The government and central bank are encouraged to design or enhance policies that provide an enabling environment for inclusive and accessible financial services. The regulatory environment should be enabling for financial inclusion; however, it should be sufficiently prudent to control for over-indebtedness.
Dr. Knar Khachatryan, BAB Program Chair
Dr. Vardan Baghdasaryan, MSM Program Chair
Dr. Aleksandr Grigoryan, Associate Professor, CBE