Quantitative insights into the impact of financial inclusion on economic growth: an econometric evaluation of Arab countries (2011-2022)
This study aims to analyze the influence of financial inclusion on economic growth in Arab countries between 2011 and 2022, focusing on key indicators such as bank account ownership, access to financial services, and borrowing trends. The study highlights the main role of financial inclusion in prom...
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| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
General Association of Economists from Romania
2025-03-01
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| Series: | Theoretical and Applied Economics |
| Subjects: | |
| Online Access: |
http://store.ectap.ro/articole/1812.pdf
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| Summary: | This study aims to analyze the influence of financial inclusion on economic growth in
Arab countries between 2011 and 2022, focusing on key indicators such as bank account ownership,
access to financial services, and borrowing trends. The study highlights the main role of financial
inclusion in promoting economic stability and supporting underserved communities across the
region.
Using Feasible Generalized Least Squares (FGLS) within a fixed effects framework, the research
addresses econometric challenges, including heteroskedasticity and autocorrelation, to accurately
capture relationships within the data. Cluster analysis further categorizes countries based on
financial inclusion performance, identifying leaders like the UAE, Bahrain, and Saudi Arabia, with
Iraq ranking lower.
Findings reveal a statistically significant positive impact of access to bank accounts on economic
growth, affirming the role of financial inclusion in driving economic stability. While access to
financial services strongly correlates with growth, other indicators, such as borrowing levels, show
weaker or insignificant effects, suggesting that broader financial access alone may not fully drive
economic growth without supportive policies. |
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| ISSN: | 1841-8678 1844-0029 |