Financial inclusion and inclusive growth in sub-Saharan Africa
Sarpong, B.; Nketiah-Amponsah, E.
This paper empirically examines the quantitative relationship between
financial inclusion and inclusive growth in sub-Saharan Africa using a panel of 46
countries for the period 2004'2018. The evidence suggests that usage of financial
services, among other covariates, has a quantifiable and discernible impact on
inclusive growth compared with availability and knowledge of financial services.
Precisely, a unit increase in the usage of financial products and services improves
inclusive growth by 0.03 units in sub-Saharan Africa. The paper contributes to
literature by initially constructing a broader index of inclusive growth and subsequently
estimating the separate quantitative effects of three categories of financial
inclusion indicators on inclusive growth by employing the Arellano'Bover/Blundell'
Bond system Generalized Method of Moment estimator. The findings underscore the
need for policymakers to develop innovative, sustainable and inclusive financial
systems capable of distributing growth benefits equitably. This can be achieved
through moderate lending rates and transaction charges, improved access to retail
and corporate loans, mortgages, overdrafts, credit cards, letters of credits and user friendly financial technologies.
Financial Inclusion; Inclusive Growth; Poverty; Inequality; Sub-Saharan Africa
Taylor & Francis Group
Type of publication|
Accra - University of Ghana
Added to C-A: 2022-07-14;07:18:50|
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