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Financial Inclusion for Inclusive Growth

Author

Listed:
  • BEN CHEIKH, Nidhaleddine

    (ESSCA School of Management)

  • Rault, Christophe

    (University of Orléans)

Abstract

Using a sample of 67 countries, this paper examines how financial inclusion shapes the transition to inclusive and sustainable growth. First, we analyze the heterogeneous and asymmetric effects of key determinants using panel quantile regression. The results show that financial inclusion, institutional quality, and ICT diffusion significantly affect inclusiveness only in the lower tail of the distribution. While financial inclusion and ICT diffusion appear detrimental, institutional quality promotes shared prosperity. Second, we explore a mediating effect using a non-linear panel threshold model. The findings highlight the role of financial inclusion in enhancing inclusive growth. Although ICT infrastructure negatively affects inclusiveness at low levels of financial inclusion, this relationship becomes positive beyond a certain threshold. These results suggest that policymakers should combine financial inclusion, governance quality, and ICT development to foster inclusive growth.

Suggested Citation

  • BEN CHEIKH, Nidhaleddine & Rault, Christophe, 2026. "Financial Inclusion for Inclusive Growth," IZA Discussion Papers 18582, IZA Network @ LISER.
    • Handle: RePEc:iza:izadps:dp18582
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    Keywords

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    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

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