Financial inclusion and inclusive growth in sub-Saharan Africa

This paper empirically examines the quantitative relationship between financial inclusion and inclusive growth in sub-Saharan Africa using a panel of 46 countries for the period 2004–2018. The evidence suggests that usage of financial services, among other covariates, has a quantifiable and discerni...

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Main Authors: Bernard Sarpong, Edward Nketiah-Amponsah
Format: Article
Language:English
Published: Taylor & Francis Group 2022-12-01
Series:Cogent Economics & Finance
Subjects:
Online Access:https://www.tandfonline.com/doi/10.1080/23322039.2022.2058734
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author Bernard Sarpong
Edward Nketiah-Amponsah
author_facet Bernard Sarpong
Edward Nketiah-Amponsah
author_sort Bernard Sarpong
collection DOAJ
description This paper empirically examines the quantitative relationship between financial inclusion and inclusive growth in sub-Saharan Africa using a panel of 46 countries for the period 2004–2018. The evidence suggests that usage of financial services, among other covariates, has a quantifiable and discernible impact on inclusive growth compared with availability and knowledge of financial services. Precisely, a unit increase in the usage of financial products and services improves inclusive growth by 0.03 units in sub-Saharan Africa. The paper contributes to literature by initially constructing a broader index of inclusive growth and subsequently estimating the separate quantitative effects of three categories of financial inclusion indicators on inclusive growth by employing the Arellano–Bover/Blundell–Bond system Generalized Method of Moment estimator. The findings underscore the need for policymakers to develop innovative, sustainable and inclusive financial systems capable of distributing growth benefits equitably. This can be achieved through moderate lending rates and transaction charges, improved access to retail and corporate loans, mortgages, overdrafts, credit cards, letters of credits and user-friendly financial technologies.
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spelling doaj-art-fb840e07f9e54cf19f169eb5dc9e5ca02025-08-20T02:01:24ZengTaylor & Francis GroupCogent Economics & Finance2332-20392022-12-0110110.1080/23322039.2022.2058734Financial inclusion and inclusive growth in sub-Saharan AfricaBernard Sarpong0Edward Nketiah-Amponsah1Economics Tutor, College of Education, University of Ghana, Accra, GhanaDepartment of Economics, University of Ghana, Accra, GhanaThis paper empirically examines the quantitative relationship between financial inclusion and inclusive growth in sub-Saharan Africa using a panel of 46 countries for the period 2004–2018. The evidence suggests that usage of financial services, among other covariates, has a quantifiable and discernible impact on inclusive growth compared with availability and knowledge of financial services. Precisely, a unit increase in the usage of financial products and services improves inclusive growth by 0.03 units in sub-Saharan Africa. The paper contributes to literature by initially constructing a broader index of inclusive growth and subsequently estimating the separate quantitative effects of three categories of financial inclusion indicators on inclusive growth by employing the Arellano–Bover/Blundell–Bond system Generalized Method of Moment estimator. The findings underscore the need for policymakers to develop innovative, sustainable and inclusive financial systems capable of distributing growth benefits equitably. This can be achieved through moderate lending rates and transaction charges, improved access to retail and corporate loans, mortgages, overdrafts, credit cards, letters of credits and user-friendly financial technologies.https://www.tandfonline.com/doi/10.1080/23322039.2022.2058734Financial InclusionInclusive GrowthPovertyInequalitySub-Saharan AfricaG21
spellingShingle Bernard Sarpong
Edward Nketiah-Amponsah
Financial inclusion and inclusive growth in sub-Saharan Africa
Cogent Economics & Finance
Financial Inclusion
Inclusive Growth
Poverty
Inequality
Sub-Saharan Africa
G21
title Financial inclusion and inclusive growth in sub-Saharan Africa
title_full Financial inclusion and inclusive growth in sub-Saharan Africa
title_fullStr Financial inclusion and inclusive growth in sub-Saharan Africa
title_full_unstemmed Financial inclusion and inclusive growth in sub-Saharan Africa
title_short Financial inclusion and inclusive growth in sub-Saharan Africa
title_sort financial inclusion and inclusive growth in sub saharan africa
topic Financial Inclusion
Inclusive Growth
Poverty
Inequality
Sub-Saharan Africa
G21
url https://www.tandfonline.com/doi/10.1080/23322039.2022.2058734
work_keys_str_mv AT bernardsarpong financialinclusionandinclusivegrowthinsubsaharanafrica
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