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Nonlinear relationship between financial inclusion and inclusive economic development in developed economies: evidence from panel smooth transition regression model.
- Source :
- International Journal of Social Economics; 2023, Vol. 50 Issue 8, p1022-1037, 16p
- Publication Year :
- 2023
-
Abstract
- Purpose: The purpose of this study is to investigate the nonlinear association between financial inclusion and inclusive economic growth (IEG) in developed economies. A Block of G7 countries (Germany, Japan, Canada, France, Italy, the UK and the US) are considered in this study. Design/methodology/approach: For analysis, the authors have employed the "Panel Smooth Transition Regression model." Annual data consists of the period from 1995 to 2019. Findings: This research makes a unique contribution to literature with reference to G7 countries, being a pioneering attempt to apply the panel threshold regression model to analyze the relationship between financial inclusion and IEG by applying more rigorous and advanced econometric techniques. Originality/value: The results indicate that total labor force available in a country, gross fixed capital formation and financial inclusion are positive and significant in lower regimes, but as it moves toward the higher regime, the labor force available in a country becomes less impactful. However, an increase has been observed in financial inclusion in the higher regime. The complete sample generally exhibits a positive yet significant relationship between financial inclusion and inclusive economic development. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 03068293
- Volume :
- 50
- Issue :
- 8
- Database :
- Complementary Index
- Journal :
- International Journal of Social Economics
- Publication Type :
- Academic Journal
- Accession number :
- 169791931
- Full Text :
- https://doi.org/10.1108/IJSE-04-2022-0223