Institutional environments and the relationship between globalization and female financial inclusion

Abstract Extant literature has explored links between globalization, financial development, and inclusion, but limited attention has been given to gender-specific outcomes. This paper examines whether globalization is associated with female financial inclusion and, whether such associations are conditioned by gender and institutional environments. Using a newly constructed Female Financial Inclusion Index (FFII) for 105 countries across the 2011, 2014, 2017, and 2021 Global Findex waves, the analysis employs fractional logit models under alternative fixed-effects specifications. Building on the globalization and finance literature, the study extends the inquiry by incorporating gendered institutional heterogeneity. The results indicate that globalization is positively associated with female financial inclusion in the cross-country dimension. The relationship is nevertheless heterogeneous across gender environments. The globalization–FFII association becomes more favorable as structural gender parity improves, although conditional marginal effects are not statistically significant at specific gender-parity levels under two-way fixed effects. Institutional conditions also shape this relationship, with the most robust moderation evidence emerging for rule of law, while evidence for informal institutions is primarily cross-country. The findings highlight the importance of complementary gender and institutional conditions in increasing inclusivity.