Sustainable development goals: Attaining sustainable living through financial inclusion in Sub-Saharan Africa

Dumani Markjackson () and Agada Franklin Ayibatunibofa ()

Journal of Contemporary Research in Business, Economics and Finance, 2024, vol. 6, issue 1, 1-12

Abstract: This study examines the effect of financial inclusion on sustainable living in 20 sub-Saharan African countries using the panel Autoregressive Distributive Lag (ARDL) model. The findings indicate that FII, the numbers of borrowers, depositors, bank branches and automated teller machines exert a significant effect on GDP per capita in sub-Saharan Africa. The Pooled Mean Group (PMG) estimates further indicate that FII (which captured the combined effect of financial access and usage) exerts a negative effect on gross domestic product (GDP) per capita in sub-Saharan Africa (SSA). However, the results of the individual measures of financial inclusion, that is, the numbers of borrowers, depositors and banking penetration exert a positive effect on gross domestic product (GDP) per capita in the long run in sub-Saharan Africa. This portends that financial inclusion is a significant contributor that can improve sustainable living conditions in sub-Saharan Africa. Based on these, the study recommends the need to improve access to and usage of financial products and services through user-friendly and service-fluent financial technologies in sub-Saharan Africa. This will help increase the number of households, smallholder farmers and businesses to access the formal financial system to meet their reoccurring and precautionary funding needs in sub-Saharan African countries.

Keywords: Autoregressive distributive lag; Financial access; Financial inclusion; Financial usage; GDP per capita; Number of borrowers; Number of depositors; Sub-Saharan Africa; Sustainable living conditions. (search for similar items in EconPapers)
Date: 2024
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