Financial Inclusion and Economic Growth: Empirical Evidence from Selected Developing Economies


  • Noor ul Ain Kashmir institute of Economics, the University of Azad Jammu and Kashmir, Muzaffarabad, Pakistan
  • Samina Sabir Assistant Professor, Kashmir institute of Economics, the University of Azad Jammu and Kashmir, Muzaffarabad, Pakistan
  • Nabila Asghar Assistant Professor, Department of Economics and Business Administration, Division of Social Sciences, University of Education Lahore, Pakistan



Financial Inclusion, Institutions, Development, Economic Growth, Developing Countries


Financial inclusion is a tool used to enhance economic growth, alleviate poverty, create employment and reduce income inequality in developing countries through providing affordable financial goods and services to low income group through financial institutions. This study analyzes the relationship among financial inclusion, entrepreneurship, institutions and economic growth for 33 developing countries over time 2004-2016 using Generalized Method of Moments (GMM). The variables of financial inclusion, entrepreneurship and institutions are incorporated in Solow growth model through total factor productivity. Empirical results show that financial inclusion has positive effect on economic growth while entrepreneurship has negative but significant effect on economic growth. Whereas some institutional variables like rule of law and political stability have negative and other institutional variables like control of corruption and government effectiveness have positive effect on economic growth.


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How to Cite

Ain, N. ul ., Sabir, S. ., & Asghar, N. . (2020). Financial Inclusion and Economic Growth: Empirical Evidence from Selected Developing Economies. Review of Economics and Development Studies, 6(1), 179-203.