Financial Inclusion for Inclusive Growth

Nidhaleddine Ben Cheikh and Christophe Rault ()
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Nidhaleddine Ben Cheikh: ESSCA School of Management
Christophe Rault: University of Orléans

No 18582, IZA Discussion Papers from IZA Network @ LISER

Abstract: Using a sample of 67 countries, this paper examines how financial inclusion shapes the transition to inclusive and sustainable growth. First, we analyze the heterogeneous and asymmetric effects of key determinants using panel quantile regression. The results show that financial inclusion, institutional quality, and ICT diffusion significantly affect inclusiveness only in the lower tail of the distribution. While financial inclusion and ICT diffusion appear detrimental, institutional quality promotes shared prosperity. Second, we explore a mediating effect using a non-linear panel threshold model. The findings highlight the role of financial inclusion in enhancing inclusive growth. Although ICT infrastructure negatively affects inclusiveness at low levels of financial inclusion, this relationship becomes positive beyond a certain threshold. These results suggest that policymakers should combine financial inclusion, governance quality, and ICT development to foster inclusive 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: 2026-04
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Persistent link: https://EconPapers.repec.org/RePEc:iza:izadps:dp18582

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