FINANCIAL INCLUSION AND ECONOMIC GROWTH: A COMPARATIVE ANALYSIS

Authors

  • Mohammed Isa Kida Federal University Lafia
  • Shehu M. Liberty University of Maiduguri, Borno State
  • Abdulganiyu Salami Federal University Lafia

Keywords:

financial inclusion, GDP per capita, economic growth.

Abstract

The study investigated and compared the level of financial inclusion in Nigeria, with that of Ghana, Kenya, Argentina, Turkey and Colombia. Using descriptive statistics, it was found that the level of financial inclusion in Nigeria improves overtime, but lower than that of the comparative countries, particularly Turkey, Colombia and Argentina. To confirm the linkage between financial inclusion and economic growth, financial inclusion index was generated from three financial inclusion indicators, using principal component analysis. The Pearson correlation coefficient shows that there is a strong and positive relationship between financial inclusion index and Nigerian economic growth. Given these findings, it is concluded that financial inclusion positively influences economic growth. It is therefore recommended that government provide enabling environment and the needed security that will ensure the long term growth and efficient performance of financial institutions and put in place polices that will increase the level of financial inclusion in the country.

Author Biographies

Mohammed Isa Kida, Federal University Lafia

Department of Economics, Federal University Lafia, Nasarawa State, Nigeria.

Shehu M. Liberty, University of Maiduguri, Borno State

Department of Public Administration, University of Maiduguri, Borno State, Nigeria.

Abdulganiyu Salami, Federal University Lafia

Department of Economics, Federal University Lafia, Nasarawa State, Nigeria.

Published

2019-04-01