Institutions and the Financial Inclusion-Economic Growth Nexus in Sub-Saharan Africa

Abstract

The nexus between financial inclusion and economic growth is a topic that is generating extensive interest among practitioners and researchers. This study examines the role of institutions on the financial inclusion and economic growth nexus in Sub-Saharan Africa from 2014 to 2021 using a system generalized method of moments dynamic panel model technique on annual data for 20 Sub-Saharan Africa nations, sourced across the years 2014–2021. The findings reveal a significant positive effect of financial inclusion and institutions on economic growth in Sub-Saharan Africa. The effect of trade on economic growth was positive whilst inflation had a negative effect. The authors recommended policymakers craft policies that enhance institutional quality and financial inclusion, which are other avenues authorities can pursue to enhance economic growth in Sub-Saharan Africa.