Financial inclusion and microfinance in the Central America

The aim of the thesis is to investigate both theoretically and empirically the potential of financial inclusion in the Central American countries. The topic of microfinance is discussed as it is one of the most important tools for the poor. The emphasis is put on developing the theoretical model of how financial inclusion is able to tackle the developing problems of the region. Furthermore, we study the development and current status of the microfinancial market. We find that the financial inclusion negatively correlates with the inequality. The Central American microfinancial market is very responsive to the legislative changes and along with the technological advances the advances can be made in the future