Bridging Gaps: Financial inclusion as a spark for MENA's economic development

Authors

  • Abdelkrim Ouahrani University of Ain Temouchent, Algeria
  • Amina Benhaddou University of Ain Temouchent, Algeria
  • Amira Driss University of Ain Temouchent, Algeria
  • Yamina Belhia University of Ain Temouchent, Algeria

Keywords:

Economic Growth, Financial Inclusion, Middle East and North African countries

Abstract

Financial inclusion is becoming a key component of development strategies for economies all over the world. It encapsulates the idea of providing financial services and goods to all members of society, irrespective of their location or income level. Using annual data from 2000 to 2020 and the PMG estimator, this study provides a comparative examination of the short- and long-term effects of Financial Inclusion (FI) on Economic Growth in Middle Eastern and North African countries. The findings indicated that in the first model, the error correction coefficient was negative and significant (-0.964), whereas in the second model, it was -0.933. This implies that FI and Economic Growth are integrated over the long term. The PMG estimations demonstrated that the financial sectors of the Middle Eastern countries are more dynamic and stable than those in North Africa as a result of the establishment of new loan facilities. Therefore, financial inclusion enhances economic progress in the Middle East. Conversely, the scarcity, lack of use and accessibility of banking and financial services are the main reasons behind the grossly distorted economic growth in North Africa.

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Published

2024-12-07

How to Cite

Ouahrani, A., Benhaddou, A., Driss, A., & Belhia, Y. (2024). Bridging Gaps: Financial inclusion as a spark for MENA’s economic development. International Journal of Economic Perspectives, 18(12), 2293–2305. Retrieved from http://www.ijeponline.org/index.php/journal/article/view/775

Issue

Vol. 18 No. 12 (2024)

Section

Peer Review Articles
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Copyright (c) 2024 Abdelkrim Ouahrani, Amina Benhaddou, Amira Driss, Yamina Belhia

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