Financial inclusion and economic growth in OIC countries

Dai-Won Kim, Jung-Suk Yu and M. Kabir Hassan

Research in International Business and Finance, 2018, vol. 43, issue C, 1-14

Abstract: This paper examines the relationship between financial inclusion and economic growth in Organization of Islamic Cooperation (OIC) countries. In order to draw multilateral results, we have set up the panel data for 55 OIC countries and estimated not only the dynamic panel estimation, but also the panel VAR, IRFs, and panel Granger causality tests. Based on the results of dynamic panel estimations, we find that financial inclusion has a positive effect on economic growth. The IFRs results derived from the panel VAR analysis suggest that financial inclusion has positive effects on the economic growth and financial inclusion and economic growth have mutual causalities with each other based on the panel Granger causality tests. Therefore, it seems reasonable to conclude that financial inclusion has positive effect on the economic growth in OIC countries.

Keywords: Financial inclusion; Economic growth; Dynamic panel estimation; Panel VAR (search for similar items in EconPapers)
JEL-codes: C33 C54 F43 O11 P52 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (96)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:43:y:2018:i:c:p:1-14

DOI: 10.1016/j.ribaf.2017.07.178

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