THE EFFECT OF FINANCIAL INCLUSION ON HOUSEHOLD INCOME IN ETHIOPIA EVIDENCE FROM ROBE TOWN

ABSTRACT   Financial inclusion is an effective tool for eradicating poverty and improving people's wellbeing generally, leading to shared prosperity. Examining the effect of financial inclusion on household income in Ethiopia using evidence from Robe Town was the primary objective of this study. The study used an explanatory research design and quantitative research methods. A sample of 384 respondents were distributed using multistage sampling techniques. 380 questionnaires were retuned. Primary data were the data that is collected for the first time and happened to be original. Both descriptive statistics and binary logistic regression analysis using SPSS version 25 software were employed. Descriptive statistics discussion was made by using measures like percentages, tables, and Ch2 for categorical and dummy variables. Except for occupation, every predictor had a statistically significant effect on financial inclusion, according to the research. Gender, distance, paperwork, and religion have a negative and substantial impact on financial inclusion, whereas age, education, income, location of residence, financial literacy, marital status, and trust in financial institutions have a positive and significant impact. Finally, the study area's financial inclusion is decreased by all factors having a negative sign. The study suggested that politicians, governments, financial institutions, and development organizations take into account the aforementioned financial inclusion components in order to address the issue of financial exclusion and combat poverty among certain demographic segments.    1