ISSN: IJSB: 2520-4750 (Online), 2521-3040 (Print) JSR : 2708-7085 (online)

The Impact of Financial Inclusion on Economic Growth and Poverty Reduction: Empirical Evidence from sub-Saharan Africa

 Author (s)

Abdul Karim Kamara

Abstract

This study examines the impact of financial inclusion (FI) on economic growth (EG) and poverty reduction in 18 sub-Saharan Africa (SSA) over the period from 2014 to 2021. The study employs fixed effects, random effects, panel-corrected standard errors (PCSE), Driscoll Kraay standard errors, the generalized method of moments (GMM), and quantile regression. A FI composite index was created using principal component analysis (PCA). According to the findings from all the models, FI has a significant positive effect on EG, and it also reduces poverty in SSA. The findings from the quantile regression indicate that countries with a higher Human Development Index (HDI) have a more significant decline in poverty. Therefore, governments and policymakers must prioritize the implementation of policies that facilitate the accessibility, availability, and usability of financial products and services. Such measures will contribute to fostering inclusive economic growth and poverty reduction in SSA.

Keywords: Financial inclusion, Principal component analysis, GMM, Quantile regression, Economic growth and poverty.

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Title: The Impact of Financial Inclusion on Economic Growth and Poverty Reduction: Empirical Evidence from sub-Saharan Africa
Author: Abdul Karim Kamara
Journal Name: International Journal of Science and Business
Website: ijsab.com
ISSN: ISSN 2520-4750 (Online), ISSN 2521-3040 (Print)
DOI: https://doi.org/10.58970/IJSB.2292
Media: Online
Volume: 32
Issue: 1
Issue publication (Year): 2024
Acceptance Date: 20/01/2024
Date of Publication: 23/01/2024
PDF URL: https://ijsab.com/wp-content/uploads/2292.pdf
Free download: Available
Page: 16-33
First Page: 16
Last Page: 33
Paper Type: Research paper
Current Status: Published

 

Cite This Article:

Abdul Karim Kamara (2024). The Impact of Financial Inclusion on Economic Growth and Poverty Reduction: Empirical Evidence from sub-Saharan Africa. International Journal of Science and Business, 32 (1), 16-33. DOI: https://doi.org/10.58970/IJSB.2292

Retrieved from https://ijsab.com/wp-content/uploads/2292.pdf

 

About Author (s)

Abdul Karim Kamara, School of Insurance and Economics, University of International Business and Economics (UIBE), No. 10, Huixin Dongjie, Chaoyang District, Beijing 100029, China.

 

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DOI: https://doi.org/10.58970/IJSB.2292

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