The impact of informality on inclusive growth in Sub-Saharan Africa: Does financial inclusion matter?

Amponsah, Mary; Agbola, Frank W.; Mahmood, Amir

doi:10.1016/j.jpolmod.2021.03.009

Cited by 31 publications

(22 citation statements)

References 52 publications

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“…In this regard, the Council of Economic and Development Affairs has made various efforts for achieving the objectives related to "promoting and enabling financial planning" under Vision 2030. The promotion of financial literacy and encouragement of financial inclusion was found to have a positive influence on long-run economic growth, and countries with proper financial systems have been found to be more likely to grow faster (Levine, 2005;Swamy, 2014;Amponsah et al, 2021). The availability of effective financial institutions is essential for mobilizing savings, allocating resources for most productive usage and enhancing the diversification of financial risk.…”

Section: Introductionmentioning

confidence: 99%

Determinants of financial inclusion across gender in Saudi Arabia: evidence from the World Bank's Global Financial Inclusion survey

Shabir

Ali

2022

IJSE

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PurposeThis paper investigates the magnitude of financial inclusion in terms of ownership and usage of financial products across gender in Saudi Arabia based on the World Bank's Global Financial Inclusion (GFI) survey data.Design/methodology/approachThis study derives the data from the GFI survey, covering 1,009 respondents from Saudi Arabia. The data on ownership and usage of financial products along with demographic characteristics of the surveyed respondents have been extracted for the analysis. The data have been analyzed with the help of statistical techniques, such as the chi-square test, and marginal effects for identifying the factors affecting financial inclusion across gender.FindingsThere is a significant association between financial inclusion and gender in terms of ownership and usage. About 82% of males have reported having a bank account with financial institutions, whereas only 60% females have reported ownership of a bank account in Saudi Arabia. The ownership and usage of financial products are comparatively more among males than females. The analysis of the marginal effect of gender shows a significant and positive impact on financial inclusion, implying that males are 10 and 13% more likely to own and use financial products, respectively, as compared to females. Further, marginal effect estimates for ownership and usage for males and females indicate that a set of independent variables related to age, level of education, occupation and income level of the respondents have a significant impact on financial inclusion.Practical implicationsFinancial inclusion across gender is the first step of creating an inclusive society and empowering both males and females equally. Findings indicated an inclination of financial inclusion towards males. The research findings provide key policy insights for achieving the Vision 2030 of Saudi Arabia by strengthening gender inclusion in its growth story and ensuring the participation of females at workplaces.Originality/valueMost of the studies have included bank account ownership in a financial institution as an indicator of financial inclusion. The authors have included ownership and usage of a variety of financial products for assessing the determinants of financial inclusion across gender, which provides empirical evidence on the magnitude of financial inclusion.

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Section: Introductionmentioning

confidence: 99%

Determinants of financial inclusion across gender in Saudi Arabia: evidence from the World Bank's Global Financial Inclusion survey

Shabir

Ali

2022

IJSE

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“…The responsibility of policymakers in the region is to create effective opportunities for financial inclusion, poverty reduction, and income inequality. Empirical results show that informality and financial inclusion are very important to increase inclusivity to achieve improvements in reducing poverty (Amponsah et al, 2021). Gutiérrez-Romero and Ahamed's (2021) research revealed that financial inclusion does not directly reduce poverty.…”

Section: Previous Study and Hypothesismentioning

confidence: 99%

“…From a policy perspective, the empirical results of Amponsah et al (2021) showed that informality and financial inclusion are very important to increasing inclusivity. In particular, although increasing the informal economy limits inclusivity and exacerbates poverty reduction, increasing paid informal work contributes to inclusive growth.…”

Section: Introductionmentioning

confidence: 99%

The Financial Inclusion of Islamic Banking for Low-Income Communities: Case Study in West Sumatera

Kamarni

Handra

Anshori

2022

JEBIS

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This study aims to analyze the prospects and perspectives of low-income people in West Sumatra on financial inclusion in Islamic banking. Also, this study analyzesvarious factors that determine Islamic banking's financial inclusion and assesses the level of public expectations of the financial inclusion of Islamic banks in West Sumatra. This study applies descriptive quantitative research with primary data. Statistical toolssuch as Mann-Whitney Rank Sum U-test, Kruskal Wallis test, weighted arithmetical mean, chi-square test, and one-way ANOVA are used to reach the research's objectives. As a result, gender, age, marital status, monthly income, type of work, and status in the household are not significantly related to the level of customer expectations of financial inclusion. However, there is a significant relationship between the level of education and type of bank with the level of customer expectations of financial inclusion. The study results illustrate that low-income people in West Sumatra are familiar with Islamic banking, but many of them have not chosen to have an account in Islamic banking. The fatwa of the Council of Ulama Indonesia (MUI) and the Islamic banking system are not fully understood by the people of West Sumatra, the majority of whom are Muslims. A bank account selection is based on ease of reach and location. However, the public's view of Islamic banks is very high, as can be seen from people's expectations that Islamic banks provide a high sense of justice and comfort.

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“…This emphasizes economic growth while paying attention to social equity, taking into account benefits and equity, which can be conducive to the realization of the goal of sustainable growth [ 8 ]. Thus, a better understanding of IG determinants to develop effective policy responses [ 9 ] is in order.…”

Section: Introductionmentioning

confidence: 99%

Evaluating the Performance of Inclusive Growth Based on the BP Neural Network and Machine Learning Approach

Fan

Liu

2022

Computational Intelligence and Neuroscience

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In this paper, we use the panel data of 281 cities in China from 2005 to 2020 for capturing the factors driving urban inclusive growth (IG). In doing this, we employ the BP neural network algorithm combined with the DEA model to measure the urban inclusive growth efficiency (IGE). Furthermore, a nest of machine learning (ML) algorithms are introduced to explore the drivers of urban IGE, which overcomes the defects of endogeneity and multicollinearity of traditional econometric methods. We find for the overall sample that entrepreneurship and innovation contribute the most to IGE, accounting for about 35%, respectively, and they are the most critical drivers, while the heterogeneity test results reveal that the contribution of influencing factors has changed for different regions such as the eastern region, the central region, and the western region. Based on the experimental results of the ML model, we provide some policy suggestions for China and similar developing countries and emerging economies to promote IG.

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The impact of informality on inclusive growth in Sub-Saharan Africa: Does financial inclusion matter?

Cited by 31 publications

References 52 publications

Determinants of financial inclusion across gender in Saudi Arabia: evidence from the World Bank's Global Financial Inclusion survey

Determinants of financial inclusion across gender in Saudi Arabia: evidence from the World Bank's Global Financial Inclusion survey

The Financial Inclusion of Islamic Banking for Low-Income Communities: Case Study in West Sumatera

Evaluating the Performance of Inclusive Growth Based on the BP Neural Network and Machine Learning Approach

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