Financial Inclusion and Legal System Quality

EasyChair Preprint 10459

Abstract

This study analysis the correlation between financial inclusion and legal system

quality among 27 developed countries from 2004 to 2020 for which data is collected

from World Bank Databases. Data is analyzed by doing a full sample survey and sub

samples analysis. In full sample analysis our findings reveal a positive correlation

between financial inclusion and legal system quality. No of bank branches and

ATM’s per 100000 is used as proxy for financial inclusion along with some major

variables for legal system quality. No of bank branches variable is positively

correlated with easy dealing with construction permits and Enforcement of judgment

while No of ATM’s variable is positively correlated with getting credit, Enforcing

contracts, Enforcement of judgment and resolving insolvency in full sample

analysis. Same positive correlation is present among most of the variables for the

sub samples including G7 Countries, European and Non- European Countries. Thus,

it is obvious that both financial inclusion and legal system quality are crucial for

each other in order to obtain a higher pace of economic growth.

Keyphrases: Financial, correlation, inclusion

@booklet{EasyChair:10459,
  author    = {Benish Naseem and Qurat Ul Ain},
  title     = {Financial Inclusion and Legal System Quality},
  howpublished = {EasyChair Preprint 10459},
  year      = {EasyChair, 2023}}