 Does financial inclusion increase participation in global value chains? Evidence from African countriesDieudonné Mignamissi, Simplice Asongu, Eric Xaverie Possi Tebeng and Yolande E. Ngoungou International Economics, 2025, vol. 183, issue C Abstract: The present paper assesses how financial inclusion promotes the participation of Africa in global value chains (GVC), contingent on financial development and institutional quality. We consider 32 African countries over the period 2004–2018, and rely on fixed effects regressions and the Lewbel (2012) instrumental variable technique. Our findings show that financial inclusion promotes the participation of countries in GVC. Moreover, financial development and institutional quality are mechanisms by which financial inclusion indirectly promotes the participation of corresponding countries in GVC. It follows that financial inclusion has both direct and indirect positive effects on GVC participation. Our results underscore the need for integrated policy frameworks that strengthen inclusive finance, deepen financial sector development, and improve institutional quality to boost African economies’ participation in international production networks. Keywords: Financial inclusion; GVC; Financial development; Institutional quality; Africa (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:inteco:v:183:y:2025:i:c:s2110701725000411 DOI: 10.1016/j.inteco.2025.100618 Access Statistics for this article International Economics is currently edited by Valerie Mignon and Marcelo Olarreaga More articles in International Economics from Elsevier |
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