Evaluating the efficiency of countries' digitalization in terms of financial inclusion by using dea

Abstract

The aim of the study is to evaluate the efficiency of countries in digitalization in terms of financial inclusion, in other words, their success in digitalization. Within the scope of the study, 117 countries were grouped as high, upper-middle, lower middle and low income and subjected to Data Envelopment Analysis. In the study conducted for the year 2021, four input variables related to the utilization and access of digital financial services were identified, along with ten corresponding output variables. Efficient countries were determined in the study based on the constant and variable return scale model for output. Digital efficiency has been identified in financial inclusion was detected in 25 countries based on variable returns and 18 countries based on constant returns in high-income countries. In upper-middle-income countries, digital efficiency in financial inclusion was identified in 12 countries based on variable returns and 9 countries based on constant returns. 16 countries in the lower middle and low income categories demonstrated digital efficiency in financial inclusion using variable returns, while 9 countries detected digital efficiency using constant returns. In the study, the comprehensive analysis of the success of digitalization in financial inclusion at the level of countries divided into income groups by using data envelopment analysis reveals the originality of the study.