AN EMPIRICAL EXAMINATION OF THE RELATIONSHIP BETWEEN GLOBAL FINANCIAL INCLUSION & ECONOMIC GROWTH

Abstract

The academics, policymakers and regulators have shown significant interest in the study of financial inclusion. Financial inclusion has theoretically demonstrated a favourable impact on economic growth, but its empirical findings seem to be rare. The goal of this article is to provide a thorough understanding of the relationship between financial inclusion and economic growth. The degree of financial inclusion on a global scale has been quantified with the help of four multi-dimensional global indexes, emphasizing the role played by the banking sector, insurance sector, and other deposit-taking corporations as well as their overall contribution to enhance the level of financial inclusion. Afterward, panel econometric techniques were used to study the relationship. The study uses annual data of 37 countries for the years 2010 to 2020. The results support favourable long-run relationship between the selected variables