IDEAS home Printed from https://ideas.repec.org/a/asi/aeafrj/v12y2022i10p864-885id4631.html
   My bibliography  Save this article

An Investigation of the Impact of Financial Inclusion on Economic Growth: Evidence from African Countries

Author

Listed:
  • Muri Wole ADEDOKUN
  • Ahmed Oluwatobi ADEKUNLE
  • Joseph Olorunfemi AKANDE

Abstract

Financial inclusion has been recognized as a development policy priority and a key to economic growth in developing economies. Essentially, most Sub-Saharan African (SSA) countries have witnessed unstable economic growth over the last three decades. Financial inclusiveness is fundamental to sustainable growth for any economy. This study investigates the effects of financial inclusion on 41 Sub-Saharan African countries from 2004–2019, employing the generalized method of moments (GMM) method and a Granger causality analysis. The results show a positive relationship between financial inclusion and economic growth. The non-causality tests revealed bi-directional causality between the variables for the whole region and low-income and lower-middle-income countries. Furthermore, a unidirectional causality runs from financial inclusion to economic growth in upper-middle-income countries. The study concluded that financial inclusion positively affects the economic growth of SSA and recommends that policies and interventions be redefined in the financial system to achieve steady economic growth and sustainability.

Suggested Citation

  • Muri Wole ADEDOKUN & Ahmed Oluwatobi ADEKUNLE & Joseph Olorunfemi AKANDE, 2022. "An Investigation of the Impact of Financial Inclusion on Economic Growth: Evidence from African Countries," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 12(10), pages 864-885.
    • Handle: RePEc:asi:aeafrj:v:12:y:2022:i:10:p:864-885:id:4631
    as

    Download full text from publisher

    File URL: https://archive.aessweb.com/index.php/5002/article/view/4631/7316
    Download Restriction: no
    File URL: https://archive.aessweb.com/index.php/5002/article/view/4631/7662
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:asi:aeafrj:v:12:y:2022:i:10:p:864-885:id:4631. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Robert Allen (email available below). General contact details of provider: https://archive.aessweb.com/index.php/5002/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.