Financial Inclusion, Financial Frictions, and Economic Growth
Evidence from Africa
Bibliographic Data
| ID | 21737589 |
|---|---|
| Authors | Elhadj Ezzahid (0000-0002-7116-4702, Mohammed V University), Zakaria Elouaourti (0000-0001-6986-3849, Mohammed V University, corresponding author) |
| Year | 2022 |
| Volume | 23 |
| Issue | 3 |
| Pages | 731-756 |
| Publication date | 2022-07-03 |
| Peer Reviewed | Yes |
| Open Access | No |
| Type | ARTICLE |
| Venue | Journal of African Business (JOURNAL) |
| Journal identifiers | ISSN: 1522-8916 • E-ISSN: 1522-9076 |
| Publisher | Informa UK Limited (PUBLISHER • GB) |
| DOI | 10.1080/15228916.2021.1926856 |
| OpenAlex | W3183055806 |
| Language | EN |
| Citations received | 4 |
| References cited | 41 |
This paper aims to first, develop an analytical framework that examines the role of financial inclusion in promoting investment and economic growth, through the reduction of financial imperfections and considering the heterogeneity of access to the financial system. When performing a comparative analysis of the levels of financial inclusion in Africa, we mobilize the principal component analysis methodology to build the African Financial Inclusion Index (AFIndex). To test the empirical validity of the analytical conclusions, we use a panel data regression technique on a database constituted of 33 African countries over the period 2004–2019. Based on model simulations, financial inclusion stimulates investment and economic growth. Empirical results provide evidence attesting to the fact that financial inclusion has a significant and positive impact on investment and economic growth in Africa. The AFIndex shows that most African economies have a low level of financial inclusion. Our model is original as it provides analytical evidence on the negative impact of financial exclusion on economic growth, emphasizing the vital role of financial inclusion for economic growth. The AFIndex is a useful tool for designing and evaluating policies and/or programs intended for promoting financial inclusion in Africa
Econometrics · Economics · Empirical evidence · Financial analysis · Financial inclusion · Financial services · Financial system · Panel data · Political science · Politics · Financial Literacy, Pension, Retirement Analysis · Islamic Finance and Banking Studies · Microfinance and Financial Inclusion · Finance
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| Unique citing works | 4 |
|---|---|
| Citations per year | 1,33 |
| Citation span | 2023 - 2025 (3) |
| Citation velocity | recent |
| Highly cited | No |
| Citation types | Neutral: 4 |