Financial inclusion and human development in frontier countries

Ababio, Josephine Ofosu‐Mensah; Attah‐Botchwey, Edward; Osei‐Assibey, Eric; Barnor, Charles

doi:10.1002/ijfe.1775

Cited by 58 publications

(58 citation statements)

References 40 publications

(61 reference statements)

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“…The two-way causality between these two variables is also discussed [64]. Prior studies have found FI and human development to be positively correlated [65,66], including one study of frontier countries from 2005 to 2014, where low human development was associated with low financial inclusion [67]. Thus, our study also hypothesizes:…”

Section: Hypothesis 1a (H1a) Financial Inclusion Increases Economic Growth In South Asiamentioning

confidence: 63%

Financial Inclusion’s Role in Economic Growth and Human Capital in South Asia: An Econometric Approach

2021

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Many of the 2030 sustainable development goals have targeted the strengthening of financial inclusion, which is currently a key policy priority on the agendas of most governments in developing nations. The process of facilitating banking and financial services for individuals is called financial inclusion, which supports growth and the broader development goals of an economy. Although economic growth and human capital development indices have been analyzed using different proxy variables, insufficient attention has been paid to constructing a composite index for measuring this to achieve greater sustainability in terms of the economy, communities, and the environment. This study sought to address this gap using secondary data from eight countries in South Asia from 2004 to 2018. A financial inclusion index was developed through principal component analysis using an econometric approach of panel data with vector error correction models and a Granger causality test. As per the results of the study, financial inclusion has a long-run impact on human capital development in South Asian countries, whereas it has a short-run positive impact on economic growth. Domestic credits to the private sector also impact the short-run growth and human capital development in the economy. This ensures the confidence of vulnerable communities in their economy, as well as information management, and allows for quality enhancements of transactions with fewer environmental impacts. Government intervention to improve access to financial services, including ATMs and commercial banking, is one policy allowing digital finance to accelerate the achievement of sustainable development goals in South Asian countries.

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Section: Hypothesis 1a (H1a) Financial Inclusion Increases Economic Growth In South Asiamentioning

confidence: 63%

Financial Inclusion’s Role in Economic Growth and Human Capital in South Asia: An Econometric Approach

2021

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“…However, financial inclusion has the tendency to reduce the size of shadow economy by bringing individuals out of the informal sector into the formal sector of the economy. It focuses on ensuring that a greater proportion of the population isactively engaged in the opportunities and processes available in the formal economic activities through mainstream financial system (Ababio et al , 2020). It is a situation where individuals and firms (small or medium) have access to useful and affordable financial products and services that meet their needs.…”

Section: Introductionmentioning

confidence: 99%

Shadow economy in Africa: how relevant is financial inclusion?

Ajide

2021

JFRC

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Purpose This study aims to investigate the possible relationship between financial inclusion and shadow economy in selected African countries. Design/methodology/approach The study uses panel data estimation technique and Toda and Yamamoto causality approach. The data of selected African counties over a period of 2005–2015 are sourced from World Bank Development Indicators, International Monetary Fund International Financial statistics database and International Country Risk Guide. Findings The results show that financial inclusion reduces the size of shadow economy. The causality results show that there is a unidirectional causality moving from financial inclusion to shadow economy. The results demonstrate that a country with lower level of corruption and higher level of growth can benefit more in reducing the size of shadow economy through financial inclusion. Originality/value This study provides the first evidence of the link between financial inclusion and shadow economy from the Sub-Saharan Africa perspective. The study suggests that financial inclusion may be useful in affecting the size of shadow economy in Africa.

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“…The system GMM approach has been used in many previous empirical health-related studies (32). Following Immurana et al (31,34), we use the dynamic panel-data model (2). This econometric specification is widely used in the empirical finance literature to examine the nexus between financial inclusion and human development.…”

Section: Model and Methodsmentioning

confidence: 99%

Financial Inclusion and Its Impact on Health: Empirical Evidence From Asia

Xiao

Tao

2022

Front. Public Health

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Asian countries have shown remarkable progress in financial inclusion and have become the world's fastest-growing regions. However, the financial inclusion-human health nexus has not received much attention. This study contributes to the empirical literature by examining the effect of financial inclusion on population health using panel data from Asian countries from 2007 to 2019. Population health is measured by death rate and life expectancy at birth. Our study finding shows that digital financial inclusion increases life expectancy but decreases the death rate in Asia. At the same time, financial inclusion positively impacts life expectancy and has a negative impact on the death rate in Asia. Finding also suggests that Internet users, GDP, and FDI have improved population health by increasing life expectancy and decreasing the death rate. The results suggest some essential policy implications.

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Financial inclusion and human development in frontier countries

Cited by 58 publications

References 40 publications

Financial Inclusion’s Role in Economic Growth and Human Capital in South Asia: An Econometric Approach

Financial Inclusion’s Role in Economic Growth and Human Capital in South Asia: An Econometric Approach

Shadow economy in Africa: how relevant is financial inclusion?

Financial Inclusion and Its Impact on Health: Empirical Evidence From Asia

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