Understanding Financial Inclusion of Individuals Engaged in Agriculture: Evidence from Upper-Middle-Income Balkan Economies

ABSTRACTEmphasizing upper-middle-income Balkan Economies, this study focuses on the determinants of financial inclusion on a sample of individuals engaged in agriculture. Using logit estimations, we investigate socio-economic characteristics influencing financial inclusion, including owning a bank account and holding savings. Results reveal that individual characteristics, such as education, income, gender, and online payment usage are influential drivers. Financial inclusion is also impacted by economy-level variables including the share of agriculture in GDP and financial infrastructure density. The study underscores the importance of tailored policies to promote financial inclusion, particularly for vulnerable groups in agriculture-dependent economies.KEYWORDS: Financial inclusionformal accountincome inequalitysaving accountJEL CLASSIFICATION: C21G21E21O12O16 AcknowledgmentsThis paper results from the research financed by the Ministry of Education, Science, and Technological Development of the Republic of Serbia.Disclosure statementNo potential conflict of interest was reported by the author(s).Additional informationNotes on contributorsIsidora LjumovicIsidora Ljumović is a principal research fellow at the Institute of Economic Sciences from Belgrade. She holds a PhD in Economics and a bachelor’s degree in Organizational Sciences. Dr. Ljumović has been involved in several domestic and international projects and initiatives, including those funded by the national ministries, the World Bank, and the European Union. She has contributed to many scientific conferences in Serbia and abroad, having published four monographs and more than fifty scientific papers in domestic and international scientific journals and thematic collections. Dr. Ljumović is a member of the Committee for Economic Sciences at Serbian Academy of Science and Arts, the Scientific Society of Economists of Serbia, and the International Association of Engineers. She is fluent in English and speaks German.Vlado KovacevicVlado I. Kovačević holds a bachelor and PhD from the Faculty of Agriculture, University of Belgrade. He worked within the Ministry of Agriculture, Forestry and Water Management as an Advisor in the Sector for International Cooperation. In TD Waterhouse Edmonton, Canada he worked as Financial Market Analyst. He was appointed Advisor to the Minister in the Ministry of Agriculture, Trade, Forestry and Water Management. Since 2016 he has been working as a Senior Research Associate at the Institute of Agricultural Economics in Belgrade. He is a member of the Steering Committee of the Institute of Agricultural Economics, member of the Supervisor Committee of the Agrocluster Serbia and Innovation Centre of Zlatibor. He is a member of the Scientific Society of Economists of Belgrade.Irena JankovicIrena Janković is an associate professor of Finance at the University of Belgrade, Faculty of Economics. She graduated and obtained her master and PhD from the University of Belgrade, Faculty of Economics. She is the author of the four monographs and numerous articles and chapters in international and domestic journals. Her field of research covers various aspects of financial markets and instruments, portfolio analysis and risk management. She is a contributor to relevant domestic and international projects in the area of economics and finance. Irena Janković is a member of editorial boards and reviewer of several highly rated international and domestic scientific journals. She is a member of the Scientific Societies of Economists of Serbia and Belgrade.