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Financial Market Inclusion and Economic Growth: Evidence from Algeria

Author

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  • CHIAD, Faycal
  • Aouissi, Amine
  • Lahsasna, Ahcene

Abstract

In this paper, we investigated the relationship between financial inclusion (FI), trade openness (TO), human development (HD), and GDP growth in Algeria. Our data set covers annual times series data from 1980 to 2018. The autoregressive distributed lag (ARDL) bounds test was used to examine the cointegration between variables due to mixed orders of integration I(0) and I(1).The results indicate that financial inclusion, trade openness, human development have a positive and significant impact on economic growth in the short and long-run, thereby confirming the strength of the finance-growth connections. Granger-causality test confirms that there is bi-directional causality between financial inclusion and economic growth.

Suggested Citation

  • CHIAD, Faycal & Aouissi, Amine & Lahsasna, Ahcene, 2021. "Financial Market Inclusion and Economic Growth: Evidence from Algeria," MPRA Paper 112034, University Library of Munich, Germany, revised 2021.
    • Handle: RePEc:pra:mprapa:112034
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    References listed on IDEAS

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    More about this item

    Keywords

    Financial inclusion; Economic Growth; ARDL; Algeria;
    All these keywords.

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

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