Mediation role of economic freedom in the nexus between financial integration and inclusive growth in Africa
Abstract The financial integration literature has mostly focused on traditional growth measures, which is a narrow form of growth. To enhance the body of knowledge on financial integration, this study addresses a gap in the existing literature by adopting a broader perspective on growth, specificall...
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| Format: | Article |
| Language: | English |
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Springer Nature
2025-07-01
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| Series: | Humanities & Social Sciences Communications |
| Online Access: | https://doi.org/10.1057/s41599-025-04762-7 |
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| author | Khadijah Iddrisu Simplice A. Asongu Eric Kofi. Boadi |
| author_facet | Khadijah Iddrisu Simplice A. Asongu Eric Kofi. Boadi |
| author_sort | Khadijah Iddrisu |
| collection | DOAJ |
| description | Abstract The financial integration literature has mostly focused on traditional growth measures, which is a narrow form of growth. To enhance the body of knowledge on financial integration, this study addresses a gap in the existing literature by adopting a broader perspective on growth, specifically focusing on inclusive growth. Also, it has largely neglected one of the mechanisms through which financial integration enhances growth. Consequently, this study contributes to the existing knowledge by analysing how economic freedom mediates the relationship between financial integration and inclusive growth in a panel of 48 African countries from 2000 to 2021. The empirical results are based on the instrumental variable generalised method of moments (IV-GMM). The findings show that financial integration promotes inclusive growth in Africa. In addition, the results revealed a partial mediation effect of economic freedom in the financial integration-inclusive growth nexus. The study recommends that policymakers should simplify regulations and cut bureaucratic hurdles for financial institutions and businesses. Strengthening legal frameworks to protect property rights and enforce contracts is essential for economic freedom. This enhances investor confidence, aids financial integration, and promotes inclusive growth. |
| format | Article |
| id | doaj-art-a24ee4e049cc428a85e6399d334949e7 |
| institution | Kabale University |
| issn | 2662-9992 |
| language | English |
| publishDate | 2025-07-01 |
| publisher | Springer Nature |
| record_format | Article |
| series | Humanities & Social Sciences Communications |
| spelling | doaj-art-a24ee4e049cc428a85e6399d334949e72025-08-20T04:01:54ZengSpringer NatureHumanities & Social Sciences Communications2662-99922025-07-0112111610.1057/s41599-025-04762-7Mediation role of economic freedom in the nexus between financial integration and inclusive growth in AfricaKhadijah Iddrisu0Simplice A. Asongu1Eric Kofi. Boadi2Islamic University CollegeSchool of Economics, University of JohannesburgKoforidua Technical UniversityAbstract The financial integration literature has mostly focused on traditional growth measures, which is a narrow form of growth. To enhance the body of knowledge on financial integration, this study addresses a gap in the existing literature by adopting a broader perspective on growth, specifically focusing on inclusive growth. Also, it has largely neglected one of the mechanisms through which financial integration enhances growth. Consequently, this study contributes to the existing knowledge by analysing how economic freedom mediates the relationship between financial integration and inclusive growth in a panel of 48 African countries from 2000 to 2021. The empirical results are based on the instrumental variable generalised method of moments (IV-GMM). The findings show that financial integration promotes inclusive growth in Africa. In addition, the results revealed a partial mediation effect of economic freedom in the financial integration-inclusive growth nexus. The study recommends that policymakers should simplify regulations and cut bureaucratic hurdles for financial institutions and businesses. Strengthening legal frameworks to protect property rights and enforce contracts is essential for economic freedom. This enhances investor confidence, aids financial integration, and promotes inclusive growth.https://doi.org/10.1057/s41599-025-04762-7 |
| spellingShingle | Khadijah Iddrisu Simplice A. Asongu Eric Kofi. Boadi Mediation role of economic freedom in the nexus between financial integration and inclusive growth in Africa Humanities & Social Sciences Communications |
| title | Mediation role of economic freedom in the nexus between financial integration and inclusive growth in Africa |
| title_full | Mediation role of economic freedom in the nexus between financial integration and inclusive growth in Africa |
| title_fullStr | Mediation role of economic freedom in the nexus between financial integration and inclusive growth in Africa |
| title_full_unstemmed | Mediation role of economic freedom in the nexus between financial integration and inclusive growth in Africa |
| title_short | Mediation role of economic freedom in the nexus between financial integration and inclusive growth in Africa |
| title_sort | mediation role of economic freedom in the nexus between financial integration and inclusive growth in africa |
| url | https://doi.org/10.1057/s41599-025-04762-7 |
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