Research on the Impacts of Financial Inclusion Towards National Economic Growth During the Period 2014–2022: New Findings and Policy Implications

Financial inclusion, by definition, refers to the level of accessibility to financial services of a country, and is gradually becoming recognized as an important indicator of growth and development of a society by many financial bodies. The academic attention on this topic, however, has not reflect its growing popularity, as research papers focusing on the title are either few in number or outdated by today’s standards. Hence, this paper wants to provide a measurement of financial inclusion across nations on a global scale, assessed by a comprehensive index, using more recently available data. Models and parameters from preceding research will still be relied upon during the construction of the index to calculate the inclusion values. Subsequently, examining the relationship between inclusive finance and economic growth will require the functions of linear and quantile regression methods. Surprisingly, the results produced indicate a contradiction to prior studies, where in particular, they suggest a lack of correlation between the investigated elements instead. On a different note, further findings were derived from the research. In particular, regression analysis suggested favorable connection between employment rate, Internet usage, and trade openness with GDPPC, in which GDPPC signifies financial growth. In line with the findings, countries should prioritize investment in these sectors when developing financial growth plans.