Title: How far is productivity relevant in explaining financial inclusion across the states of India? An empirical investigation

Authors: Shantanu Ghosh; Tarak Nath Sahu

Addresses: Department of Commerce, Vidyasagar University, West Bengal – 721102, India ' Department of Commerce, Vidyasagar University, West Bengal – 721102, India

Abstract: The article exhibits inter-state evidence that an increase in productivity can promote financial inclusion, using data on 27 states and five union territories of India over the period 2002-2019. After controlling the effects of population, inflation and expenditure by governments on health and education; the study reports a contemporaneous association along with a unidirectional positive impact of productivity on per capita savings account. Applying the panel data econometrics aligned with some post-analytical checks for robustness, the study finds a significant impact of per capita net state domestic product on holding of per capita savings accounts. Propositions by Robinson and Lucas across the Indian provinces might be correct.

Keywords: economic development; financial inclusion; productivity; India.

DOI: 10.1504/GBER.2022.123276

Global Business and Economics Review, 2022 Vol.26 No.4, pp.417 - 435

Received: 18 Apr 2021
Accepted: 01 Aug 2021

Published online: 07 Jun 2022 *

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