Financial Inclusion for Inclusive Growth

Nidhaleddine Ben Cheikh and Christophe Rault

No 12615, CESifo Working Paper Series from CESifo

Abstract: Using a sample of 67 countries, this article examines how financial inclusion, among other factors, shapes the transition to inclusive and sustainable growth. First, we analyze the heterogeneous and asymmetric relationship between inclusiveness and its main determinants using recent panel quantile regression techniques. Our results suggest that the distributional effects of financial inclusion, institutional quality, and information and communication technology (ICT) diffusion are statistically significant only in the lower tail of the conditional distribution. Although both financial inclusion and ICT diffusion are detrimental to inclusive growth, institutional quality is conducive to greater shared prosperity. Next, we examine the existence of a mediating effect in the process of inclusiveness using non-linear panel threshold modelling. Our results highlight the mediating role of financial inclusion in achieving more inclusive and sustainable growth. While ICT infrastructure negatively impacts growth inclusiveness at low financial inclusion levels, a positive relationship is observed when financial affordability exceeds a certain threshold. Policymakers are called upon to harness the combined impacts of financial inclusion, governance quality, and ICTs to ensure inclusive economic growth.

Keywords: inclusive growth; financial inclusion; non-linear panel data modelling (search for similar items in EconPapers)
JEL-codes: C23 O11 O16 O43 (search for similar items in EconPapers)
Date: 2026
New Economics Papers: this item is included in nep-ict and nep-pay
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_12615

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