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Does institutional quality affect financial inclusion in Africa? A panel data analysis

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  • Ongo Nkoa, Bruno Emmanuel
  • Song, Jacques Simon

Abstract

In this article, we investigate the impact of institutional quality on financial inclusion with a sample of fifty-one African countries. We specify and estimate a dynamic panel data model with the system–generalized method of moments (sys-GMM) over the period 2004–2018, based on different approaches to financial inclusion. Our results show that institutional quality increases financial inclusion as well as the penetration, accessibility, and use of financial services in Africa. These results remain robust to the provision of financial education. Acceleration of income-generating activities in Africa will require improvement in financial institutions.

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  • Ongo Nkoa, Bruno Emmanuel & Song, Jacques Simon, 2020. "Does institutional quality affect financial inclusion in Africa? A panel data analysis," Economic Systems, Elsevier, vol. 44(4).
    • Handle: RePEc:eee:ecosys:v:44:y:2020:i:4:s0939362520301540
    DOI: 10.1016/j.ecosys.2020.100836
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    10. Ozili, Peterson K, 2023. "Corporate governance and financial inclusion," MPRA Paper 118799, University Library of Munich, Germany.
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    More about this item

    Keywords

    Africa; Education; Institutions; Sys-GMM;
    All these keywords.

    JEL classification:

    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy
    • G02 - Financial Economics - - General - - - Behavioral Finance: Underlying Principles
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid

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