Financial inclusion and economic growth MENA region

Abstract EN

Financial inclusion aims to include all excluded population into the financial system, to reduce poverty and raise economic growth rate.

The paper examines financial inclusion in 23 countries in Middle East and North Africa region over the period from 2004 to 2016 using multi-dimensional index, which are availability, usage, and access to banking services.

Panel model estimated to test impact of financial inclusion on economic growth and poverty reduction using financial inclusion data set.

Positive significant variables found to be number of automated teller machines, number of depositors, borrowers and bank accounts as well as credit as percentage of GDP.

The paper underscores governments’ needs to provide complementary policies towards higher financial inclusion to raise economic growth and reduce poverty.