Does financial inclusiveness affect economic growth? new evidence using a dynamic panel threshold regression
This study examines the impact of financial inclusiveness on economic growth using a sample of 60 countries from 2010 to 2017. A new Index of Financial Inclusion (IFI) has been constructed for each country to determine their level of financial inclusiveness across time. The main findings using a dyn...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Elsevier
2021
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| Online Access: | http://psasir.upm.edu.my/id/eprint/96781/ http://psasir.upm.edu.my/id/eprint/96781/1/ABSTRACT.pdf |
| _version_ | 1848862443345805312 |
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| author | Abdul Karim, Zulkefly Nizam, Rosmah Law, Siong Hook Hassan, M. Kabir |
| author_facet | Abdul Karim, Zulkefly Nizam, Rosmah Law, Siong Hook Hassan, M. Kabir |
| author_sort | Abdul Karim, Zulkefly |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | This study examines the impact of financial inclusiveness on economic growth using a sample of 60 countries from 2010 to 2017. A new Index of Financial Inclusion (IFI) has been constructed for each country to determine their level of financial inclusiveness across time. The main findings using a dynamic panel threshold estimation technique revealed a threshold effect in the financial inclusiveness-growth nexus. We find that the level of financial inclusiveness is beneficial and positively affects economic growth at lower or upper threshold levels in a different regime. Furthermore, the threshold impact of financial inclusion is positive and has a more significant growth-enhancing effect among less developed and emerging market countries relative to developed ones. Thus, policymakers in less developed and emerging market countries need to prioritize their efforts to raise the level of financial inclusiveness in place of its greater growth-enhancing effect in these countries. |
| first_indexed | 2025-11-15T13:17:06Z |
| format | Article |
| id | upm-96781 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T13:17:06Z |
| publishDate | 2021 |
| publisher | Elsevier |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-967812022-12-01T08:09:45Z http://psasir.upm.edu.my/id/eprint/96781/ Does financial inclusiveness affect economic growth? new evidence using a dynamic panel threshold regression Abdul Karim, Zulkefly Nizam, Rosmah Law, Siong Hook Hassan, M. Kabir This study examines the impact of financial inclusiveness on economic growth using a sample of 60 countries from 2010 to 2017. A new Index of Financial Inclusion (IFI) has been constructed for each country to determine their level of financial inclusiveness across time. The main findings using a dynamic panel threshold estimation technique revealed a threshold effect in the financial inclusiveness-growth nexus. We find that the level of financial inclusiveness is beneficial and positively affects economic growth at lower or upper threshold levels in a different regime. Furthermore, the threshold impact of financial inclusion is positive and has a more significant growth-enhancing effect among less developed and emerging market countries relative to developed ones. Thus, policymakers in less developed and emerging market countries need to prioritize their efforts to raise the level of financial inclusiveness in place of its greater growth-enhancing effect in these countries. Elsevier 2021 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/96781/1/ABSTRACT.pdf Abdul Karim, Zulkefly and Nizam, Rosmah and Law, Siong Hook and Hassan, M. Kabir (2021) Does financial inclusiveness affect economic growth? new evidence using a dynamic panel threshold regression. Finance Research Letters, 46 (pt. A). art. no. 102364. pp. 1-10. ISSN 1544-6123; ESSN: 1544-6131 https://www.sciencedirect.com/science/article/pii/S1544612321003676 10.1016/j.frl.2021.102364 |
| spellingShingle | Abdul Karim, Zulkefly Nizam, Rosmah Law, Siong Hook Hassan, M. Kabir Does financial inclusiveness affect economic growth? new evidence using a dynamic panel threshold regression |
| title | Does financial inclusiveness affect economic growth? new evidence using a dynamic panel threshold regression |
| title_full | Does financial inclusiveness affect economic growth? new evidence using a dynamic panel threshold regression |
| title_fullStr | Does financial inclusiveness affect economic growth? new evidence using a dynamic panel threshold regression |
| title_full_unstemmed | Does financial inclusiveness affect economic growth? new evidence using a dynamic panel threshold regression |
| title_short | Does financial inclusiveness affect economic growth? new evidence using a dynamic panel threshold regression |
| title_sort | does financial inclusiveness affect economic growth? new evidence using a dynamic panel threshold regression |
| url | http://psasir.upm.edu.my/id/eprint/96781/ http://psasir.upm.edu.my/id/eprint/96781/ http://psasir.upm.edu.my/id/eprint/96781/ http://psasir.upm.edu.my/id/eprint/96781/1/ABSTRACT.pdf |