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Promoting Financial Inclusivity, A Route To Economic Growth: An Empirical Analysis From Sub-Saharan African Countries

Author

Listed:
  • Sulayman Jallow

    (KIIT Deemed to be University, India)

  • Pradipta Kumar Sahoo

    (Narasingh Choudhury Autonomous College, Jajpur (Utkal University), India)

  • Bamadev Mahapatra

    (Biju Patnaik University of Technology, Odisha)

Abstract

This study examines the relationship between financial inclusion and per capita income growth for 42 sub-Saharan African countries from 2007 to 2020. Using the Generalized Method for Moments framework, this study discloses that a rise in the number of bank branches, automated teller machines, and savings stimulates per capita economic growth. Conversely, an elevated number of credit provisions to the private sector and high growth of population hinder per capita economic growth. The policy recommendation is for banking authorities to expand their services to underserved areas, raise interest rates on deposits, and decrease credit provision to the private sector.

Suggested Citation

  • Sulayman Jallow & Pradipta Kumar Sahoo & Bamadev Mahapatra, 2024. "Promoting Financial Inclusivity, A Route To Economic Growth: An Empirical Analysis From Sub-Saharan African Countries," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 27(Spesial I), pages 59-74, Februari.
    • Handle: RePEc:idn:journl:v:27:y:2024:i:sie:p:59-74
    DOI: https://doi.org/10.59091/2460-9196.2159
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    References listed on IDEAS

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    More about this item

    Keywords

    Financial inclusion; Sub-Saharan Africa; Economic growth;
    All these keywords.

    JEL classification:

    • G2 - Financial Economics - - Financial Institutions and Services
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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