Drivers of Financial Inclusion: Insights from Sub-Saharan Africa

Shani Bashiru, Alhassan Bunyaminu, Ibrahim Nandom Yakubu and Mamdouh Abdulaziz Sa Al-Faryan
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Shani Bashiru: Faculty of Business, Accra Technical University, Accra 00233, Ghana
Alhassan Bunyaminu: Department of Banking and Finance, University of Professional Studies, Accra 00233, Ghana

Economies, 2023, vol. 11, issue 5, 1-11

Abstract: Financial inclusion has garnered global attention due to the detrimental effect that financial exclusion has on tackling socioeconomic challenges such as poverty. Using a dynamic panel approach, our study examines the drivers of financial inclusion in the context of Sub-Saharan Africa (SSA) over the period 2000 to 2017. We discover that financial globalization and literacy rates positively and significantly drive financial inclusion. We also find that rural population growth has a profound adverse impact on financial inclusion. The study further reveals that bank profitability, bank stability, and economic growth have a negative albeit insignificant effect on financial inclusion. The positive effect of financial globalization on financial inclusion has important policy implications for Sub-Saharan African countries. In this respect, the integration of the local financial system with global financial markets will facilitate efforts to achieve financial inclusion in the region.

Keywords: financial inclusion; financial globalization; economic growth; Sub-Saharan Africa; GMM technique (search for similar items in EconPapers)
JEL-codes: E F I J O Q (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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