Determinants of Financial Inclusion in Africa and OECD Countries

Evžen Kočenda and Samuel Eshun

No 2023/18, Working Papers IES from Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies

Abstract: Using a dynamic panel data analysis, we explore the factors influencing financial inclusion in Sub-Saharan Africa (SSA) and countries belonging to the Organization for Economic Co-operation and Development (OECD). We employ the System Generalized Method of Moments (GMM) estimator and assess 31 SSA and 38 OECD countries from 2000-2021. We found that the differences in trade openness, banks' efficiency, income, and remittances are some macro-level factors that explain the variation in financial inclusion levels. We highlight the importance of quality literacy policies, trade improvement with restrictions on cross-border capital flows, and a more efficient financial system to promote financial inclusion.

Keywords: Financial Inclusion; Financial Inclusion Index; Sub-Saharan Africa (SSA); Organization for Economic Co-operation and Development (OECD); System Generalized Methods of Moments (GMM) (search for similar items in EconPapers)
JEL-codes: C23 E44 F65 G21 O16 O57 (search for similar items in EconPapers)
Pages: 42 pages
Date: 2023-05, Revised 2023-05
New Economics Papers: this item is included in nep-afr, nep-fdg, nep-fle and nep-pay
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:fau:wpaper:wp2023_18

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