This research explores financial inclusion's effects on sustainability in 50 Global South countries, suggesting context matters for effectiveness.
Key Points
The study aims to investigate how financial inclusion impacts economic, social, and environmental sustainability in the Global South, focusing on enabling conditions.
Analyzed data from 50 Global South countries from 2000 to 2023.
Utilized system GMM to address dynamics and endogeneity.
Employed the augmented mean group (AMG) estimator for heterogeneity.
Used panel threshold models to identify nonlinear tipping points.
Financial inclusion enhances economic growth mainly where human capital is strong.
It reduces inequality effectively when digital ecosystems are extensive and affordable.
It mitigates environmental pressures significantly with substantial renewable energy capacity.