Financial Inclusion as a Key Driver for Economic Growth in Developing Countries

Abstract

Financial inclusion and ICT may affect economic growth in developing countries. Financial inclusion is a decisive and vital part of economic growth and has become a very strong problem in recent years. Inclusive finance is an element of financial progress. Considering the effects of financial inclusion and information communication and technology, we have investigated how financial access with modern technology influences the growth pattern of developing economies by using data from 2005 to 2020. The random effect results indicate that financial inclusion and information and communication technology are contributing positively towards economic growth in these economies. The study results also show that human capital seems to be affecting the growth of the nations. Moreover, the urban population also affects economic growth.  It is recommended that there should be more provision of financial services for more growth. The government should give more free-of-cost education for higher and increased growth. More modern technology should be introduced to make the workers more efficient and increase productivity. Finally, government should give employment chances in the developing economies.