Financial Inclusion, Investments and Economic Growth: Does Investment Mediate Financial Inclusion for Economic Growth in Africa?

Gladys A. A. Nabieu, Amoah T. Kwabena and James D. Ntiamoah ()
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James D. Ntiamoah: University of Professional Studies, Accra (UPSA)

The African Finance Journal, 2023, vol. 25, issue 1, 63-84

Abstract: The study examines unresolved literature on the effects and mediating role of financial inclusion, investment, and economic growth interrelationships in 41 African countries from 2009-2019. We find strong evidence that public and foreign direct investments significantly and positively affect economic growth. But then, financial inclusion and private investments adversely affect economic growth. The Preacher and Hayes bootstrapping approach employed to analyze the mediating effects shows that public investments fully mediate the financial inclusion-economic growth nexus in Africa. African states should make financial inclusion a national responsibility as it boosts capital formation and infrastructure for economic growth.

Keywords: Financial Inclusion; Mediating Effect; Economic Growth (search for similar items in EconPapers)
JEL-codes: G11 G20 O4 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:afj:journl:v:25:y:2023:i:1:p:63-84

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