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An Investigation into the Level of Financial Inclusion in Sub-Saharan Africa

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  • Biliqees Ayoola Abdulmumin
  • Oyebola Fatima Etudaiye-Muhtar
  • Abdulrasaq Taiye Jimoh
  • Ola Ridwan Sakariyahu

Abstract

Financial inclusion is crucial for redistribution of economic resources between the deficit and surplus units in an economy. Despite the importance of financial inclusion, especially for economic growth of developing regions such as Sub-Saharan Africa, the prevailing level financial inclusion remain an open question. Against this background, this study investigates the level of financial inclusion in Sub-Saharan Africa between 2005 and 2015. This study employs secondary data obtained from the International Monetary Fund (IMF). The data obtained was subjected to Principal Component Analysis to determine the level of financial inclusion in Sub-Saharan Africa. The findings show that Sub-Saharan Africa has a medium level of financial inclusion during the observed period with Index of Financial Inclusion (IFI) value of 0.095023. The study concludes that Sub-Saharan Africa has high propensity to achieve a high level of financial inclusion in the region if more outlets of financial institutions are established. JEL Codes - G1; G2

Suggested Citation

  • Biliqees Ayoola Abdulmumin & Oyebola Fatima Etudaiye-Muhtar & Abdulrasaq Taiye Jimoh & Ola Ridwan Sakariyahu, 2019. "An Investigation into the Level of Financial Inclusion in Sub-Saharan Africa," Scientific Annals of Economics and Business (continues Analele Stiintifice), Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 66(1), pages 41-63, March.
    • Handle: RePEc:aic:saebjn:v:66:y:2019:i:1:p:41-63:n:128
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    More about this item

    Keywords

    financial inclusion; financial inclusion index; Sub-Saharan Africa;
    All these keywords.

    JEL classification:

    • G1 - Financial Economics - - General Financial Markets
    • G2 - Financial Economics - - Financial Institutions and Services

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