Inclusive Growth in SubSaharan Africa: Do Financial Depth and Inclusion Matter?
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Date
2021-07-16
Authors
Jombo, Wytone
Journal Title
Journal ISSN
Volume Title
Publisher
African Economic Research Consortium
Abstract
This study attempts to contribute to the existing literature by exploring the effect
of financial inclusion and depth on inclusive growth for 26 sub-Saharan Africa
countries. Using the random effects panel regressions, the results suggest that
financial inclusion positively affects inclusive growth in the sub-Saharan region, while
financial depth variable does not. At very high levels of financial inclusion, however,
the results portray decreasing marginal effects of financial inclusion on inclusive
growth. Evidence from this study, however, shows weak transmission channel from
financial deepening indicators to inclusive growth. The study recommends more
financial inclusion drives, particularly those where the levels of financial inclusion
are still low and significant to inclusive growth.