Year: 2021
Type: article
Abstract: Do higher per capita incomes translate into higher financial inclusion in Africa? Ourapplication of the Bayesian VAR estimation approach to the World Bank Development Indicatorsdatasets for 15 African countries provides affirmative evidence to this question. Using a BayesianVAR approach for a panel of 15 countries in Africa over the period from 2005 to 2014, the findingsshow that per capital incomes, deposit interest rate and the internet has positive and significant impacton financial inclusion. That is, higher per capital incomes is associated with higher levels of financialinclusion in Africa. It is, however, interesting to note that financial inclusion is having a positive butinsignificant impact on per capita income. Moreover, the internet is coming out to be a significantvariable indicating that more attention is required to be paid to developing internet access in Africafor the advancement of financial inclusion. The findings of this study should be of help to Africancentral banks‟ policymakers and commercial bankers as they advance innovative approaches toenhance the involvement of excluded poor people in formal finance.
Author: Collective Authors
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: diamond
Funder: European Commission
OpenAlex ID: W7217013049