Title: Does financial inclusion affect economic growth? A global perspective

Authors: Misbah Khizar; Zia-Ur-Rehman Rao; Muhammad Zubair Tauni; Rizwan Mushtaq

Addresses: Hailey College of Commerce, University of the Punjab, Lahore, Pakistan ' Hailey College of Commerce, University of the Punjab, Lahore, Pakistan ' EM Normandie Business School, Le Havre, France ' OCRE Research Laboratory, EDC Paris Business School, Paris, France

Abstract: This study aims to examine the impact of financial inclusion on economic growth in four different income groups from 2005-2020. A multidimensional index of financial inclusion was developed, and then this newly constructed index has been used to examine the effect of FI on economic growth. Financial inclusion indicators investigated in the present study include domestic credit from financial sector and private sector, number of commercial banks and ATMs per 1,000 km2 and 100,000 adults, borrowers and depositors from commercial bank. Gross domestic product per capita (GDPPC) is used as a measure of economic growth. In this study Stata software has been used to assess the impact of variables. According to the findings, in countries with low financial inclusion index (FII) and low income, financial inclusion has a positive significant impact on economic growth. Policymakers should design initiatives that increase access to and use of financial products.

Keywords: financial inclusion; multidimensional index; economic growth.

DOI: 10.1504/IJBCG.2022.128169

International Journal of Business Competition and Growth, 2022 Vol.8 No.1/2, pp.78 - 111

Received: 19 Jun 2022
Accepted: 30 Jul 2022

Published online: 09 Jan 2023 *

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