This paper aims to assess the effect of inclusive finance on the level of inclusive growth in West African Economic and Monetary Union (WAEMU) countries. For that purpose, a synthetic indicator for inclusive growth is elaborated. Then, this indicator is used as an endogenous variable in a dynamic panel model including the main factors of the financial system as exogenous. About financial variables used in this paper, inclusive finance is apprehended by rate of use of banking services and microfinance penetration rate. In addition, the different types of bank interest rates are used in this analysis to show their effects on the evolution of inclusive growth. Results showed a positive and significant effect of the development of banking services on inclusion of growth in the (WAEMU) countries. However, the penetration rate of microfinance services did not show a significant effect on the evolution of inclusive growth of these economies. The levels of interest rates granted by banks according to the type of beneficiary (loans to individuals) or the item of use (equipment loans and consumer loans) negatively influence inclusive growth in the WAEMU countries. Overall, these results indicate that actions to promote the use of banking services would be beneficial to the process of inclusion of growth for WAEMU countries. With regard to microfinance services, actions must first focus on improving the efficiency of current microfinance services and then proceed to the popularization of these services.
| Published in | Economics (Volume 10, Issue 3) |
| DOI | 10.11648/j.eco.20211003.13 |
| Page(s) | 87-93 |
| Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
| Copyright |
Copyright © The Author(s), 2021. Published by Science Publishing Group |
Inclusive Finance, Inclusive Growth, Penetration Rate, Loans, Interest Rates, Dynamic Panel
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APA Style
Israël Sawadogo, Ndiack Fall. (2021). The Role of Inclusive Finance in the Quest for Inclusive Growth. Economics, 10(3), 87-93. https://doi.org/10.11648/j.eco.20211003.13
ACS Style
Israël Sawadogo; Ndiack Fall. The Role of Inclusive Finance in the Quest for Inclusive Growth. Economics. 2021, 10(3), 87-93. doi: 10.11648/j.eco.20211003.13
AMA Style
Israël Sawadogo, Ndiack Fall. The Role of Inclusive Finance in the Quest for Inclusive Growth. Economics. 2021;10(3):87-93. doi: 10.11648/j.eco.20211003.13
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Download@article{10.11648/j.eco.20211003.13,
author = {Israël Sawadogo and Ndiack Fall},
title = {The Role of Inclusive Finance in the Quest for Inclusive Growth},
journal = {Economics},
volume = {10},
number = {3},
pages = {87-93},
doi = {10.11648/j.eco.20211003.13},
url = {https://doi.org/10.11648/j.eco.20211003.13},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.eco.20211003.13},
abstract = {This paper aims to assess the effect of inclusive finance on the level of inclusive growth in West African Economic and Monetary Union (WAEMU) countries. For that purpose, a synthetic indicator for inclusive growth is elaborated. Then, this indicator is used as an endogenous variable in a dynamic panel model including the main factors of the financial system as exogenous. About financial variables used in this paper, inclusive finance is apprehended by rate of use of banking services and microfinance penetration rate. In addition, the different types of bank interest rates are used in this analysis to show their effects on the evolution of inclusive growth. Results showed a positive and significant effect of the development of banking services on inclusion of growth in the (WAEMU) countries. However, the penetration rate of microfinance services did not show a significant effect on the evolution of inclusive growth of these economies. The levels of interest rates granted by banks according to the type of beneficiary (loans to individuals) or the item of use (equipment loans and consumer loans) negatively influence inclusive growth in the WAEMU countries. Overall, these results indicate that actions to promote the use of banking services would be beneficial to the process of inclusion of growth for WAEMU countries. With regard to microfinance services, actions must first focus on improving the efficiency of current microfinance services and then proceed to the popularization of these services.},
year = {2021}
}
TY - JOUR T1 - The Role of Inclusive Finance in the Quest for Inclusive Growth AU - Israël Sawadogo AU - Ndiack Fall Y1 - 2021/08/24 PY - 2021 N1 - https://doi.org/10.11648/j.eco.20211003.13 DO - 10.11648/j.eco.20211003.13 T2 - Economics JF - Economics JO - Economics SP - 87 EP - 93 PB - Science Publishing Group SN - 2376-6603 UR - https://doi.org/10.11648/j.eco.20211003.13 AB - This paper aims to assess the effect of inclusive finance on the level of inclusive growth in West African Economic and Monetary Union (WAEMU) countries. For that purpose, a synthetic indicator for inclusive growth is elaborated. Then, this indicator is used as an endogenous variable in a dynamic panel model including the main factors of the financial system as exogenous. About financial variables used in this paper, inclusive finance is apprehended by rate of use of banking services and microfinance penetration rate. In addition, the different types of bank interest rates are used in this analysis to show their effects on the evolution of inclusive growth. Results showed a positive and significant effect of the development of banking services on inclusion of growth in the (WAEMU) countries. However, the penetration rate of microfinance services did not show a significant effect on the evolution of inclusive growth of these economies. The levels of interest rates granted by banks according to the type of beneficiary (loans to individuals) or the item of use (equipment loans and consumer loans) negatively influence inclusive growth in the WAEMU countries. Overall, these results indicate that actions to promote the use of banking services would be beneficial to the process of inclusion of growth for WAEMU countries. With regard to microfinance services, actions must first focus on improving the efficiency of current microfinance services and then proceed to the popularization of these services. VL - 10 IS - 3 ER -
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