Digital Financial Inclusion and Economic Growth: A Cross-country Study

Digital financial inclusion: A gateway to sustainable development

“…(e.g., digitising salary, trade payments, credit) especially for micro, small and medium enterprises (MSMEs), potentially creating 95 million new jobs and increasing the global GDP by 6% by 2025. [ 8 , 10 , 11 , 12 ] [ 13 , 14 , 6 , 26 ] [ 31 , 32 , 34 , 19 ] [ 21 , 3 , 23 , 29 ] SDG 9: Industry, innovation and infrastructure Small businesses may use digital financing to develop, innovate., enter new markets, and attract more young talent to the digital economy. [ 10 , 13 , 14 , 15 ] [ 26 , 32 , 19 ] SDG 10: Reduced inequalities Digital finance can create an equalising force giving low-income households to access low-cost digital finance and improve financial resilience.…”

“… [ 11 , 13 , 25 , 27 ] Cooperation Various government entities, including central banks and ministries, should collaborate and form partnerships with private and public institutions to facilitate decision-making on financial inclusion-related issues. [ 2 , 7 , 11 , 12 , 6 ] [ 18 , 32 , 34 , 19 ] [ 21 , 23 ] Knowledge The necessity to gather and analyse data generated by financial inclusion initiatives, assess the efficacy of financial inclusion policy implementation and provide suggestions and feedback. [ 10 , 12 , 13 , 14 ] [ 15 , 25 , 26 , 17 ] [ 31 , 32 ] Proportionality In constructing a new regulatory model capable of protecting the present financial system, the pursuit of balance is essential.…”

“… A A Safari, Bisimwa, & Armel [ 20 ] 2021 Emerald This research looks at consumers' views and intentions regarding online banking in the banking industry. NA NA Shen, Hu, & Hueng [ 21 ] 2021 Science Direct The study investigated the economic impact of digital financial inclusion in 105 countries. NA NA Tram, Lai, & Nguyen [ 3 ] 2021 Science Direct This study aims to develop a composite financial inclusion index (FI index) by including data linked to "mobile money" into the three dimensions of financial inclusion to represent a country's financial inclusion level accurately.…”

“…Financial inclusion is recognised internationally as a factor to sustainable development due to a more efficient and safer financial transaction; providing the poor with an opportunity through educating them in managing financial risk will help eradicate poverty [ 47 , 38 , 12 ]. Acquisition by most adults on such financial services has positively impacted the economy's financial system [ 21 ]. However, such privileges are only apparent in developed countries as most developing countries are inaccessible to the formal financial system.…”

Reconsidering the nexus between monetary policy and economic growth in Nigeria: The role of interest rate, money supply, and financial inclusion

“…The results reveal that financial inclusion has significant positive impact on economic growth and the impact is more significant in low-income and new EU member countries than in highincome and old EU countries. Using spatial data and techniques for 86 neighbouring countries, Shen et al (2021) find that digital financial inclusion has a significantly positive effect on economic growth and spatial spillover effects on the countries. Singh and Stakic (2020) employ the Pedroni panel co-integration test and two types of co-integration regression methods, the fully modified ordinary least square (FMOLS) and the dynamic ordinary least square (DOLS) methods, to examine the nexus between financial inclusion index (FII) and economic growth in all eight South Asian Association for Regional Cooperation (SAARC) countries from 2004 to 2017.…”