Social capital, financial inclusion and human security

Utilizing data from the Harmonized Living Standard Measure Survey for the periods 2018-2019 and 2021-2022, we use propensity score matching, difference-in-differences, mediation analysis, and instrumental variables methods to assess the causal effects of social capital, financial inclusion, and human security.

The results reveal a substantial and positive impact of social capital and financial inclusion on human security, with a more pronounced effect among women. Post-COVID-19 analysis demonstrates that the interaction between social capital and financial inclusion played a moderating role in mitigating the negative impact of the pandemic shock on human security. Additionally, the analysis indicates that financial inclusion serves as a partial mediator between social capital and human security, an effect that has strengthened in the aftermath of the pandemic.