Econometric analysis finds financial inclusion boosts economic growth alongside working-age demographics in MENA nations, suggesting finance mitigates aging population challenges.
Key Points
Investigate how financial inclusion moderates the relationship between population age structure and economic growth through the lens of public good theory in the MENA region.
Analyzed macro-level panel data across 10 MENA countries (Algeria, Bahrain, Egypt, Jordan, Morocco, Oman, Qatar, Saudi Arabia, Tunisia, UAE) from 2002 to 2023.
Evaluated relationships using fixed-effects models, pooled regression, two-stage least squares (2SLS), and system generalized method of moments (GMM).
The interaction between financial inclusion and the working-age population created a complementary catalyst for growth, displaying stronger effects in high-income countries than in lower-income countries.