Financial Inclusion and Sustainable Growth in North African Firms: A Dynamic-Panel-Threshold Approach

Wafa Khémiri, Ahmed Chafai () and Faizah Alsulami
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Wafa Khémiri: Department of Finance, École Supérieure de Commerce de Tunis, University of Manouba, LARIMRAF LR21ES29, Campus Universitaire Manouba, 2010 Manouba, Tunisia
Ahmed Chafai: Department of Economics, École Supérieure de Commerce de Tunis, University of Manouba, ThÉMA LR16ES10, Campus Universitaire Manouba, 2010 Manouba, Tunisia
Faizah Alsulami: Department of Accounting, Faculty of Business Administration, University of Tabuk, P.O. Box 741, Tabuk 71491, Saudi Arabia

Risks, 2023, vol. 11, issue 7, 1-19

Abstract: This paper investigates the impact of financial inclusion on sustainable firm growth in Northern African countries (Egypt, Morocco, and Tunisia) during the period of 2007–2020. To this end, this study employs a dynamic panel threshold regression (DPTR) model. This model is a panel-data model that can capture different behaviors of data, depending on a threshold variable. The main results showed the existence of a threshold effect. This means that when financial inclusion is low (high), sustainable firm growth is limited (significant) due to the absence (presence) of appropriate financing, information, and financial tools. However, the levels of financial inclusion in North African countries are insufficient and require improvement. Therefore, it is essential for policymakers and managers to continue to promote the quality of financial inclusion by improving access to financial services and the regulatory environment to facilitate firms’ access to financing and support their sustainability.

Keywords: financial inclusion; sustainable firm growth; DPTR; North African countries (search for similar items in EconPapers)
JEL-codes: C G0 G1 G2 G3 K2 M2 M4 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:gam:jrisks:v:11:y:2023:i:7:p:132-:d:1195767

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