The Impact of Financial Inclusion on Economic Growth in Egypt Using Fuzzy Regression

Abstract

Not only in developed nations but also in developing nations, participation in the financial system is turning into a key focus of attention and effort. It is considered a valid instrument for the purpose of fostering economic growth and bringing about a reduction in levels of poverty. This study's objective is to investigate the factors that contribute to the expansion of Egypt's economy, particularly financial inclusion. The researchers used a possibilistic fuzzy regression to investigate the effect of financial inclusion on economic growth in Egypt throughout the span of time between 2004 and 2019. Their findings led them to the conclusion that financial inclusion has no bearing on economic growth. The study recommends paying more attention to eradicating financial illiteracy by placing issues of improving financial inclusion at the forefront of economic and financial policy priorities and developing the infrastructure of the financial system as well as enhancing disclosure and transparency in banking transactions.