Impact of financial inclusion on firms’ growth in African nations
The paper examines financial inclusion's impact on firms' growth in African countries. The paper employs the two-step system generalized method of moment (GMM) to mitigate endogeneity concerns and covers 2010 to 2019 periods to exclude the impact of the covid-19 crisis on the estimated par...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Human Resources Management Academic Research Society (HRMARS)
2024
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| Online Access: | http://psasir.upm.edu.my/id/eprint/116468/ http://psasir.upm.edu.my/id/eprint/116468/1/116468.pdf |
| _version_ | 1848867010293792768 |
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| author | Hayatu, Ahmed Matemilola, Bolaji Tunde A. N., Bany Ariffin Wei Ni, Soh |
| author_facet | Hayatu, Ahmed Matemilola, Bolaji Tunde A. N., Bany Ariffin Wei Ni, Soh |
| author_sort | Hayatu, Ahmed |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | The paper examines financial inclusion's impact on firms' growth in African countries. The paper employs the two-step system generalized method of moment (GMM) to mitigate endogeneity concerns and covers 2010 to 2019 periods to exclude the impact of the covid-19 crisis on the estimated parameters of the models. The findings show that automatic teller machines, acting as a proxy for financial inclusion, positively influence the growth of firms in ten African nations. Similarly, bank branches, which also serve as a proxy for financial inclusion, positively influence firms' growth in ten African nations. The results are robust to alternative model specifications. The results suggest that investors may benefit from firms’ business expansion as banks' financial inclusion strategy attracts additional deposits to lend to firms to fund profitable investments which stimulate their growth. |
| first_indexed | 2025-11-15T14:29:42Z |
| format | Article |
| id | upm-116468 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T14:29:42Z |
| publishDate | 2024 |
| publisher | Human Resources Management Academic Research Society (HRMARS) |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-1164682025-04-09T00:30:58Z http://psasir.upm.edu.my/id/eprint/116468/ Impact of financial inclusion on firms’ growth in African nations Hayatu, Ahmed Matemilola, Bolaji Tunde A. N., Bany Ariffin Wei Ni, Soh The paper examines financial inclusion's impact on firms' growth in African countries. The paper employs the two-step system generalized method of moment (GMM) to mitigate endogeneity concerns and covers 2010 to 2019 periods to exclude the impact of the covid-19 crisis on the estimated parameters of the models. The findings show that automatic teller machines, acting as a proxy for financial inclusion, positively influence the growth of firms in ten African nations. Similarly, bank branches, which also serve as a proxy for financial inclusion, positively influence firms' growth in ten African nations. The results are robust to alternative model specifications. The results suggest that investors may benefit from firms’ business expansion as banks' financial inclusion strategy attracts additional deposits to lend to firms to fund profitable investments which stimulate their growth. Human Resources Management Academic Research Society (HRMARS) 2024-12-28 Article PeerReviewed text en cc_by_4 http://psasir.upm.edu.my/id/eprint/116468/1/116468.pdf Hayatu, Ahmed and Matemilola, Bolaji Tunde and A. N., Bany Ariffin and Wei Ni, Soh (2024) Impact of financial inclusion on firms’ growth in African nations. International Journal of Academic Research in Business and Social Sciences, 14 (12). pp. 3851-3866. ISSN 2222-6990 https://hrmars.com/index.php/IJARBSS/article/view/23744/Impact-of-Financial-Inclusion-on-Firms-Growth-in-African-Nations 10.6007/ijarbss/v14-i12/23744 |
| spellingShingle | Hayatu, Ahmed Matemilola, Bolaji Tunde A. N., Bany Ariffin Wei Ni, Soh Impact of financial inclusion on firms’ growth in African nations |
| title | Impact of financial inclusion on firms’ growth in African nations |
| title_full | Impact of financial inclusion on firms’ growth in African nations |
| title_fullStr | Impact of financial inclusion on firms’ growth in African nations |
| title_full_unstemmed | Impact of financial inclusion on firms’ growth in African nations |
| title_short | Impact of financial inclusion on firms’ growth in African nations |
| title_sort | impact of financial inclusion on firms’ growth in african nations |
| url | http://psasir.upm.edu.my/id/eprint/116468/ http://psasir.upm.edu.my/id/eprint/116468/ http://psasir.upm.edu.my/id/eprint/116468/ http://psasir.upm.edu.my/id/eprint/116468/1/116468.pdf |