Financial access and the finance–growth nexus
Evidence from developing economies
Bibliographic Data
| ID | 21515818 |
|---|---|
| Authors | Hazwan Haini (0000-0002-0007-7409, Universiti Brunei Darussalam, corresponding author) |
| Year | 2021 |
| Volume | 48 |
| Issue | 5 |
| Pages | 693-708 |
| Publication date | 2021-05-04 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | International Journal of Social Economics (JOURNAL) |
| Journal identifiers | ISSN: 0306-8293 • E-ISSN: 1758-6712 |
| Publisher | Emerald (PUBLISHER) |
| DOI | 10.1108/ijse-08-2020-0549 |
| OpenAlex | W3129393149 |
| Language | EN |
| Citations received | 4 |
| References cited | 39 |
Purpose This study examines the impact of financial institutions access and financial institutions depth on economic growth in 51 low- and lower–middle-income countries from 1996 to 2017. Design/methodology/approach The study employs an index of financial institutions depth and financial institutions access that considers the multidimensional nature of finance. The study employs a generalised least squares model as the baseline fixed effects model suffers from serial correlation. In addition, the study examines the marginal impact of financial development on growth at varying levels of financial access. Findings The results show that both financial access and financial depth are positive to growth. However, the marginal impact of financial depth is negative at low levels of financial access, while the finance–growth relationship becomes positive at higher levels of financial access. Results suggest the importance of developing inclusive financial systems that emphasise quality rather than quantity to promote economic growth. Research limitations/implications The major limitation lies in the measurement of financial access as it focusses more on financial system penetration and overlooks the other aspects of financial inclusion such as financial literacy and cultural differences. Practical implications Developing countries should continue to develop an inclusive financial system that supports the Universal Financial Access 2020 initiative. Originality/value This study provides further empirical evidence on the finance–growth literature focussing on the impact of financial inclusion which is scarce. Furthermore, the study employs an index of finance that captures the multidimensional nature of finance
Access to Finance · Economics · Financial deepening · Financial econometrics · Financial inclusion · Financial intermediary · Financial literacy · Financial modeling · Financial sector · Financial sector development · Financial services · Financial system · Geography of finance · Indirect finance · Economic Growth and Development · Financial Literacy, Pension, Retirement Analysis · Microfinance and Financial Inclusion · Finance
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| Citations per year | 1 |
|---|---|
| Citation span | 2022 - 2023 (2) |
| Highly cited | No |