Empirical analysis uncovers a negative link between resource dependency and financial inclusion, suggesting a need for improved institutional quality and policy frameworks.
While natural resource wealth should, in theory, fuel development, many extractive economies remain structurally excluded from financial services. This paper investigates the hypothesis of a « financial exclusion curse » in resource-rich African countries, by empirically comparing them to resource-poor but financially inclusive peers. Using Propensity Score Matching, the Synthetic Control Method, and dynamic panel GMM models, we demonstrate a robust negative relationship between resource dependency and financial inclusion. Yet, comparative insights from Southeast Asia and Latin America reveal that inclusive financial ecosystems can flourish—even in rent-driven contexts—when institutional quality, digital innovation, and proactive policy align. Our findings call for a paradigm shift: beyond banking access, states must reshape financial infrastructures to democratize opportunity in resource economies.
No takes yet. Share an insight, caveat, or question.
Randy Kambana Moïse (2025) studied this question.
Synapse has enriched 5 closely related papers on similar clinical questions. Consider them for comparative context: