Journal of Economics and Financial Analysis, 8 (1), pp. 75-105, [2024]

Financial Inclusion and Economic Growth: Exploring a New Pattern of Functional Relationships



This paper endeavours to investigate the nexus between financial inclusion and economic growth, elucidating the positive effects stemming from the broadening utilization of financial services within society using panel data encompassing ten countries —Argentina, Armenia, Chile, Costa Rica, Georgia, India, Moldova, Montenegro, Poland, and Saudi Arabia— over the periods of 2010-2019.
The findings reveal that there exist initial positive effects on GDP concomitant with the expansion of financial services usage, followed by subsequent positive effects that may manifest irrespective of further expansion. From an econometric standpoint, this implies a positive response of the GDP indicator to the augmentation of financial services expansion indicators and conversely, a negative response to their decline. Thus, it concludes mixed relationships, characterized by the amalgamation of two distinct responses of the dependent variable concerning its association with the independent variable.


Financial Inclusion; Financial Service; Economic Growth; Gross Domestic Product; Mixed Relationship.

JEL Classification

G20, O43, C51.

Full Text:


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