Financial inclusion and economic growth: empirical insights from emerging economies.
DOI:
https://doi.org/10.51247/st.v9iS2.356Keywords:
financial inclusion; economic growth; digital finance; emerging economies; resilience; regulation.Abstract
This study examined the relationship between financial inclusion and sustainable economic growth in emerging economies, with particular emphasis on traditional banking access and digital financial innovations. The objective was to analyze the extent to which financial inclusion contributes to macroeconomic growth, resilience, and equitable development. A mixed-methods methodology was adopted, combining doctrinal analysis of financial regulations and institutional frameworks with empirical investigation based on comparative evidence from selected emerging economies. Quantitative indicators related to bank account penetration, digital financial services, and economic performance were considered, alongside qualitative case studies from India, Kenya, Bangladesh, and the Philippines. The results demonstrated that financial inclusion significantly enhanced capital accumulation, productive investment, and household resilience, while digital finance amplified access and reduced transaction costs. Institutional quality and regulatory frameworks were identified as key moderating factors influencing the inclusion-growth relationship. The findings also showed that hybrid strategies integrating policy design, technological innovation, and regulatory oversight produced the most effective outcomes. It was concluded that financial inclusion constitutes a strategic mechanism for promoting sustainable economic growth, reducing structural inequalities, and strengthening economic resilience in emerging markets.
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