Title: A cross country empirical investigation of association between the financial inclusion and economic growth

Authors: Priyanka Verma; Pooja Soni; Keshav Malhotra

Addresses: Department of Evening Studies – MDRC, Panjab University, Chandigarh, India ' University Business School, Panjab University, Chandigarh, India ' Department of Evening Studies – MDRC, Panjab University, Chandigarh, India

Abstract: Policies on financial inclusion have gathered significant interest from academics, policymakers, and regulators. Theoretically, it has been shown that financial inclusion has a positive effect on economic growth. But there do not appear to have been enough empirical studies. The article seeks to provide a comprehensive understanding of the connection between financial inclusion and economic expansion. To quantify the degree of financial inclusion on a global scale, a multidimensional global index for financial inclusion (GIFI) is constructed keeping in mind the role play of banking, insurance and other deposit corporations. The relationship between financial inclusion and economic growth is then investigated using panel econometric approaches based on the aforementioned built index. For 2010 through 2020, this analysis used annual data from 37 different countries. Our result supports favourable long-run relationship between financial inclusion and economic expansion.

Keywords: global financial inclusion index; banking sector; insurance sector; economic growth.

DOI: 10.1504/IJBEM.2024.141737

International Journal of Business and Emerging Markets, 2024 Vol.16 No.4, pp.563 - 587

Received: 06 Jun 2023
Accepted: 21 Jun 2023
Published online: 01 Oct 2024 *

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