TY - JOUR
T1 - The nexus between financial inclusion and economic development
T2 - Comparison of old and new EU member countries
AU - Huang, Ruixian
AU - Kale, Seenaiah
AU - Paramati, Sudharshan Reddy
AU - Taghizadeh-Hesary, Farhad
N1 - Publisher Copyright:
© 2020 Economic Society of Australia, Queensland
Copyright:
Copyright 2020 Elsevier B.V., All rights reserved.
PY - 2021/3
Y1 - 2021/3
N2 - The main objective of this study is to investigate the impact of financial inclusion and trade openness on the economic development of 27 European Union (EU) nations. The sample countries are classified into low-income, high-income, old-EU, and new-EU members; this distinction allows us to provide more constructive and practical policy implications. Yearly data from 1995 to 2015 and panel econometric techniques were used. The results show that access, depth, efficiency, and the overall development of financial institutions have significant positive impact on economic growth in both the full sample and sub-samples. We also find that capital, labour, energy consumption and trade openness play an important role in driving economic growth across these panels. Moreover, the impact of financial inclusion on economic output is more significant in low-income and new-EU member countries than in high-income and old-EU countries. Based on these findings, detail policy implications for the entire EU, as well as for its sub-groups, are provided.
AB - The main objective of this study is to investigate the impact of financial inclusion and trade openness on the economic development of 27 European Union (EU) nations. The sample countries are classified into low-income, high-income, old-EU, and new-EU members; this distinction allows us to provide more constructive and practical policy implications. Yearly data from 1995 to 2015 and panel econometric techniques were used. The results show that access, depth, efficiency, and the overall development of financial institutions have significant positive impact on economic growth in both the full sample and sub-samples. We also find that capital, labour, energy consumption and trade openness play an important role in driving economic growth across these panels. Moreover, the impact of financial inclusion on economic output is more significant in low-income and new-EU member countries than in high-income and old-EU countries. Based on these findings, detail policy implications for the entire EU, as well as for its sub-groups, are provided.
KW - Economic development
KW - EU members
KW - Financial inclusion
KW - Panel estimations
KW - Trade openness
UR - http://www.scopus.com/inward/record.url?scp=85096178610&partnerID=8YFLogxK
U2 - 10.1016/j.eap.2020.10.007
DO - 10.1016/j.eap.2020.10.007
M3 - Article
AN - SCOPUS:85096178610
VL - 69
SP - 1
EP - 15
JO - Economic Analysis and Policy
JF - Economic Analysis and Policy
SN - 0313-5926
ER -