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Financial inclusion and sustainable development: an empirical association

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  • Peterson K. Ozili

Abstract

Purpose - This paper aims to investigate the association between financial inclusion and sustainable development in a global context. Design/methodology/approach - The study used two datasets, and employed the Pearson correlation analysis and granger causality test to examine the correlation and pairwise causality between financial inclusion and sustainable development. Findings - High levels of financial inclusion (in terms of higher commercial bank branches per 100,000 adults) is significantly associated with higher electricity production from renewable sources, higher industry productivity, higher adult literacy rate and higher renewable electricity output. Also, higher financial inclusion is significantly associated with low combustible renewables and waste. There is a uni-directional granger causality between global interest in internet information about sustainable development and global interest in internet information about financial inclusion, particularly in the period after the global financial crisis but before the COVID-19 pandemic. Practical implications - The correlation between financial inclusion and sustainable development depends on the indicators employed to measure financial inclusion and sustainable development. The results support global calls for greater financial inclusion and the speedy attainment of the sustainable development goals for the good of all people, the environment and for the planet. Originality/value - This paper is the first study in the literature to analyze the link between financial inclusion and sustainable development using global data. This study contributes to the existing literature by investigating the association between financial inclusion and sustainable development in a global context.

Suggested Citation

  • Peterson K. Ozili, 2022. "Financial inclusion and sustainable development: an empirical association," Journal of Money and Business, Emerald Group Publishing Limited, vol. 2(2), pages 186-198, September.
    • Handle: RePEc:eme:jmbpps:jmb-03-2022-0019
    DOI: 10.1108/JMB-03-2022-0019
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    Cited by:

    1. Mebratu Negera & Tekie Alemu & Fitsum Hagos & Amare Haileslassie, 2025. "Does financial inclusion enhance farmers' resilience to climate change? Evidence from rural Ethiopia," Sustainable Development, John Wiley & Sons, Ltd., vol. 33(2), pages 3008-3022, April.
    2. Tuwe Soro Garbobiya & Olajide Oladipo & Paul Terhemba Iorember, 2024. "Financial inclusion and monetary policy targets: Evidence from the ECOWAS countries," Modern Finance, Modern Finance Institute, vol. 2(1), pages 84-100.
    3. Christelle Meniago, 2025. "Digital Financial Inclusion and Economic Growth: The Moderating Role of Institutions in SADC Countries," IJFS, MDPI, vol. 13(1), pages 1-19, January.
    4. Megha Garg & Parveen Kumar, 2024. "Harnessing digital technologies for triple bottom line sustainability in the banking industry: a bibliometric review," Future Business Journal, Springer, vol. 10(1), pages 1-23, December.
    5. Jeswin Jose & Nabanita Ghosh, 2025. "Digital financial literacy and financial inclusion in the global south for a sustainable future: A scoping review," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 52(1), pages 129-148, March.
    6. Kyoungmin Lee & Minsung Kim & Sohyun Yoon & Jin-young Kim, 2025. "Use of central bank digital currency in the travel context," Information Technology & Tourism, Springer, vol. 27(2), pages 449-476, June.
    7. Tran Thi Kim Oanh, 2024. "Sustainable development: Driving force from the relationship between finance inclusion, green finance and green growth," Sustainable Development, John Wiley & Sons, Ltd., vol. 32(3), pages 2811-2829, June.
    8. Bilgehan Tekin, 2024. "The catalyzing role of financial inclusion in decoding environmental challenges and fostering a sustainable future in BRICS‐T," Economics and Politics, Wiley Blackwell, vol. 36(3), pages 1572-1603, November.
    9. Khanullah Mohammady & Sudha Vepa, 2025. "Assessing Gender Disparities in Formal Financial Services Utilization in Afghanistan: Evidence from the Global Findex Database," Post-Print hal-04990019, HAL.
    10. Peterson K. Ozili, 2023. "Using Central Bank Digital Currency to Achieve the Sustainable Development Goals," Contemporary Studies in Economic and Financial Analysis, in: Digital Transformation, Strategic Resilience, Cyber Security and Risk Management, volume 111, pages 143-153, Emerald Group Publishing Limited.
    11. Hauwah K. K. Abdulkareem & Sodiq Olaiwola Jimoh & Taofeekat Temitope Nofiu & Rashidat Sumbola Akande, 2025. "Leaving No One Behind: Examining the effect of financial, gender, and digital inclusion on sustainable development," Sustainable Development, John Wiley & Sons, Ltd., vol. 33(2), pages 2519-2534, April.
    12. Hasan, Morshadul & Hoque, Ariful & Abedin, Mohammad Zoynul & Gasbarro, Dominic, 2024. "FinTech and sustainable development: A systematic thematic analysis using human- and machine-generated processing," International Review of Financial Analysis, Elsevier, vol. 95(PC).
    13. Bu, Fan & wu, Hong & Mahmoud, Haitham A. & Alzoubi, Haitham M. & Ramazanovna, Nargiza Kuzieva & Gao, Yirui, 2023. "Do financial inclusion, natural resources and urbanization affect the sustainable environment in emerging economies," Resources Policy, Elsevier, vol. 87(PA).
    14. Bambe, Bao-We-Wal, 2025. "Macroprudential policies and private domestic investment in developing countries: An instrumental variables approach," IDOS Discussion Papers 3/2025, German Institute of Development and Sustainability (IDOS).

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    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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