Analysing the Role of Financial Inclusion in Regional Development: An Approach Based on PLS-SEM and Multigroup Analysis (MGA)

Abstract

This study analyzes the impact of financial inclusion on regional development using Partial Least Squares Structural Equation Modeling (PLS-SEM) and Multigroup Analysis (MGA). The empirical analysis is based on municipal-level data derived from the 2020 Economic Census and administrative records from the National Banking and Securities Commission (CNBV) in Mexico. The results reveal a positive and significant relationship between financial inclusion and regional development, indicating that territories with greater access to financial services tend to exhibit more dynamic economic and social outcomes. However, important heterogeneities emerge between urban and rural contexts, where the relationship is notably stronger in urban areas. These findings highlight the importance of strengthening financial infrastructure in underserved regions to foster the expansion of banking services, promote savings, consumption, and investment, and reduce spatial inequalities. Overall, the study contributes to the understanding of how financial inclusion can support more balanced territorial development.