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The impact of financial inclusion on sustainable development: Evidence from BICS economies

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  • Chen, Chi
  • Pal, Shreya
  • Mahalik, Mantu Kumar
  • Gozgor, Giray

Abstract

This study examines the impact of financial inclusion on sustainable development in the BICS (Brazil, India, China, and South Africa) economies, using balanced panel data from 2004 to 2023. This study also employs the System Generalised Method of Moments, Driscoll–Kraay standard errors, and Feasible Generalised Least Squares regression techniques for the empirical analysis. The findings indicate that financial inclusion is a significant driver of sustainable development. Gross fixed capital formation and urbanisation also make positive contributions, underscoring the importance of sustainable infrastructure and well-planned urban growth. By contrast, economic globalisation and ineffective government policies are found to hinder progress towards sustainability. Taken together, these results highlight the need for BICS countries to expand financial access, increase investment in fixed capital, and promote resilient urban development.

Suggested Citation

  • Chen, Chi & Pal, Shreya & Mahalik, Mantu Kumar & Gozgor, Giray, 2026. "The impact of financial inclusion on sustainable development: Evidence from BICS economies," Research in International Business and Finance, Elsevier, vol. 82(C).
    • Handle: RePEc:eee:riibaf:v:82:y:2026:i:c:s0275531925004805
    DOI: 10.1016/j.ribaf.2025.103224
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