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Determinants of Financial Inclusion in Africa: A Dynamic Panel Data Approach


  • Evans, Olaniyi


This study documents the determinants of financial inclusion in Africa for the period 2005 to 2014, using the dynamic panel data approach. The study finds that per capita income, broad money (% of GDP), literacy, internet access and Islamic banking presence and activity are significant factors explaining the level of financial inclusion in Africa. Domestic credit provided by financial sector (% of GDP), deposit interest rates, inflation and population have insignificant impacts on financial inclusion. The findings of this study are of utmost value to African central banks, policymakers and commercial bankers as they advance innovative approaches to enhance the involvement of excluded poor people in formal finance in Africa.

Suggested Citation

  • Evans, Olaniyi, 2016. "Determinants of Financial Inclusion in Africa: A Dynamic Panel Data Approach," MPRA Paper 81326, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:81326

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    References listed on IDEAS

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    More about this item


    Financial inclusion; finance; dynamic panel data; Africa;

    JEL classification:

    • G2 - Financial Economics - - Financial Institutions and Services
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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