Impact of financial inclusion factors on real GDP growth: A panel data analysis

This research paper examines the impact of financial inclusion factors on the GDP growth rate across 100 countries over the period 2006-2021, using the dynamic Generalized Method of Moments (GMM). It analyzes various dimensions of financial inclusion, including access to financial services, usage of financial services, and the quality of financial services. The analysis reveals that access to financial services is a major challenge in many countries, with physical access to financial institutions being the primary issue. The findings also show statistically significant positive relationships between GDP growth and: the number of ATMs, the number of commercial bank outlets per 1,000 square km, and the number of ATMs per 100,000 adults; while negative relationships are observed between GDP growth and: the number of commercial banking institutions, the number of commercial bank branches, the number of commercial bank outlets per 100,000 adults, and the number of ATMs per 1,000 square km. These findings have important implications, including the need to support the development of financial inclusion, improve access to financial services, and enhance financial literacy. It is also necessary to create an enabling regulatory environment and financial infrastructure that support the growth of inclusive financial systems.