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The regulatory environment, access innovations and financial inclusiveness: perspective from emerging economies

Author

Listed:
  • Rexford Abaidoo

    (University of Maryland Eastern Shore)

  • Elvis Kwame Agyapong

    (GIMPA Green Hill)

Abstract

This study evaluates the effect of the regulatory environment and access innovations on the pace of financial inclusiveness among emerging economies of Sub-Saharan Africa (SSA). Data for the inquiry were compiled from 28 countries in SSA from 2004 to 2020. Empirical estimates were conducted using the two-step system generalized method of moments (TS-SGMM) methodology. Results from the estimates indicate that an improved regulatory environment promotes financial inclusion among economies in the sub-region of SSA. The study also finds that Access innovations positively influence the process of financial inclusion. Additionally, reported empirical estimates show that political instability negatively moderates the relationship between examined regulatory variables (regulatory quality, government effectiveness, and rule of law), access innovations, and financial inclusion among economies in the sub-region. Following these findings, we recommend the promotion and support for efficient regulatory structures and policy measures that foster stable political environment for economies in the sub-region to promote financial inclusiveness. Additionally, the study supports the development of financial sector policies, which makes it easier to adopt evolving technologies that promote activities of the financial system to foster financial inclusiveness.

Suggested Citation

  • Rexford Abaidoo & Elvis Kwame Agyapong, 2024. "The regulatory environment, access innovations and financial inclusiveness: perspective from emerging economies," SN Business & Economics, Springer, vol. 4(5), pages 1-19, May.
    • Handle: RePEc:spr:snbeco:v:4:y:2024:i:5:d:10.1007_s43546-024-00652-3
    DOI: 10.1007/s43546-024-00652-3
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    1. António Afonso & M. Carmen Blanco-Arana, 2025. "Creating Businesses in the Least Developed Countries: Does the Regulatory Environment Matter?," CESifo Working Paper Series 11838, CESifo.

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    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • G - Financial Economics

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