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The Nexus between Financial Innovation, Financial Inclusion, and Economic growth in Africa: A PMG Approach

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  • Tough Chinoda

    (Senior Lecturer, Faculty of Management and Entrepreneurial Sciences, Women’s University in Africa, Manresa, Harare, Zimbabwe)

  • Josphat Nyoni

    (Senior Lecturer, Faculty of Management and Entrepreneurial Sciences, Women’s University in Africa, Manresa, Harare, Zimbabwe)

  • Maxwell Chufama

    (Lecturer, Namibia University of Science and Technology)

  • Andrew Jeremiah

    (Lecturer, Namibia University of Science and Technology)

  • Martin Dandira

    (Lecturer, Namibia University of Science and Technology)

Abstract

This study investigates the nexus between financial inclusion, financial innovation and economic growth in Africa by employing the panel autoregressive distribution lags using panel data over the period 2004–2018. The empiri¬cal findings reveals that the impact of economic growth on financial inclusion in Africa is positive and significant in the short and long run lending support to the growth led finance hypothesis that financial inclusion leads to economic growth. This paper, also finds a significant positive effect of financial innovation on financial inclusion in the long and short run in line with the supply leading hypothesis. We thus recommend policymakers to implement strategies that reckon incentives that can accelerate economic growth and financial innovations which can ultimately augment financial inclusion.

Suggested Citation

  • Tough Chinoda & Josphat Nyoni & Maxwell Chufama & Andrew Jeremiah & Martin Dandira, 2021. "The Nexus between Financial Innovation, Financial Inclusion, and Economic growth in Africa: A PMG Approach," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 5(10), pages 544-550, October.
    • Handle: RePEc:bcp:journl:v:5:y:2021:i:10:p:544-550
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    References listed on IDEAS

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