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How Does Financial Inclusion Affect Human Development? Evidence From Algeria

Year: 2025

Type: article

Abstract: This study explores the relationship between financial inclusion and human development in Algeria from 2004 to 2021, using a composite index of financial inclusion and the Autoregressive Distributed Lag (ARDL) model. The research integrates two dimensions of financial inclusion: access to financial services and usage of financial services, using indicators such as ATMs, bank branches, bank deposits, and domestic credit. The results confirm a long-run cointegration between financial inclusion and human development. In the short run, financial inclusion significantly impacts human development, with a 38.9% adjustment rate towards equilibrium. The findings underscore the vital role of financial inclusion in enhancing human development, with implications for policy aimed at fostering economic growth and improving living standards. The study also emphasizes the importance of strengthening financial systems to maximize these effects.

Source: International Journal of Innovative Technologies in Social Science

DOI: 10.31435/ijitss.1(45).2025.3250

Authors: Nid Safa, Heriat Bothaina

Institution: University of Biskra

Language: English

Topic: Microfinance and Financial Inclusion

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Decent work and economic growth, No poverty, Reduced inequalities

Open Access status: gold

Estimated APC paid: $100