Financial Inclusion and Its Impact on Economic Growth: An Empirical Evidence from South Asian Countries

Financial inclusion contributes to the growth of a country through developing financial infrastructure, which accelerates economic activities and creates employment. The study attempted to explore the contribution of financial inclusion on economic growth in 4 South Asian countries. In my study, I used various panel data models, and several measures of financial inclusion to reveal the relationship between economic growth and financial inclusion. The findings of the study confirmed that financial inclusion had a positive impact on economic growth in those countries although the extent of effect varies across different measures of financial inclusion. Therefore, policy makers in these countries must take necessary steps to accelerate financial inclusion activities to achieve robust economic growth.