FINANCIAL INCLUSION AND EXCLUSION OF THAI BORDER TRADERS
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The purposes of this research were to study factors affecting decision of Thai border traders to make financial transaction through the formal banking system reflecting their financial inclusion; and to study the model determining decision of border traders to make their financial trading transaction through the formal and informal banking system. Theoretical framework was applied from International Trade theory, Financial Inclusion concept, Financial Literacy concept, and Border Trade concept. Research methodologies consisted of in-depth interview of 46 informants, including border traders, commercial bank managers, government officers of offices of foreign trade and customs, and the survey technique using stratified random sampling to select 659 Thai border traders to answer self-reported questionnaire. Data were analyzed by Factor Analysis, Multiple Linear Regression models, and Bivariate Ordered Probit models. Research results found that major factors affecting financial inclusion of Thai border traders consisted of knowledge and understanding, skill and expertise, confidence and attitudes, and experience on the formal financial system; and financial inclusion model indicated that border traders who traded through formal banking system emphasized more on reducing financial transaction risk while border traders who traded through informal banking system focused more on reducing transaction costs, thus, trade using cash through informal financial market.