Causality between Financial Inclusion and Agricultural Sector Output in Nigeria

Okuma, N. C.; Nwoko, Cyprain N.J; Elugom, Ubogu Festus; Uche, Asomba Sebastine

doi:10.18488/journal.1.2019.94.304.317

Cited by 6 publications

(1 citation statement)

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“…They concluded that a significant and positive influence existed from spending on public goods on the per capita AGDP growth in Indonesia. Festus and Sebastine (2019) observed the linkage between produced agricultural goods and financial inclusion in Nigeria. The timeframe for their study was 1986-2017, and the tests included the unit root, the co-integration test of Engle-Granger, a model test of error correction (ECM) and a test of Granger causality.…”

Section: Financial Inclusion and Agricultural Growthmentioning

confidence: 99%

Exploring the long-run relationship between financial inclusion and agricultural growth: evidence from Pakistan

Farooq

Guan

et al. 2021

IJOEM

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PurposeThis study aims to investigate the long-run relationship between financial inclusion and agricultural growth in Pakistan for the period of 1960–2018.Design/methodology/approachThe autoregressive distributed lag (ARDL) approach, the Johansen co-integration test and the dynamic ordinary least squared (DOLS) method are used for the evaluation.FindingsThe results show that in both short- and long run, domestic credit has a significantly negative impact on the agricultural growth, while broad money and cropped area positively affected the agricultural growth in Pakistan in both cases.Practical implicationsThe government and policymakers need to develop strategies that bring together agriculturalists on a single platform so that the government can clearly distinguish the interests of these farmers and can obtain precise information for allocating agricultural expenditure and easing access to credit for small-scale agriculturalists.Originality/valueThis is the first study to evaluate the impact of financial inclusion on the agricultural growth in Pakistan by using different econometric techniques, including the ARDL-bound approach, Johansen co-integration test and DOLS method.

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Section: Financial Inclusion and Agricultural Growthmentioning

confidence: 99%

Exploring the long-run relationship between financial inclusion and agricultural growth: evidence from Pakistan

Farooq

Guan

et al. 2021

IJOEM

View full text Add to dashboard Cite

show abstract

Financial inclusion, digital finance and agricultural participation

Mumtaz

2024

AFR

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PurposeFinancial inclusion and digital finance go side by side and help enhance agricultural activities; however, the magnitude of digital financial services varies across countries. In line with this argument, this study aims to examine whether financial inclusion enhances agricultural participation and decompose the significance of the difference in determinants of agricultural participation between financially included – not financially included households and digital finance – no digital finance households.Design/methodology/approachThis study uses Pakistan’s household integrated economic survey 2018/19 to test hypotheses. The logit model is used to examine the effect of financial inclusion on agriculture participation. Moreover, this study employs a nonlinear Fairlie Oaxaca Blinder technique to investigate the difference in determinants of agricultural participation.FindingsThis study reports that financial inclusion positively influences agricultural participation, meaning households may have access to financial services and participate in agricultural activities. The results suggest that the likelihood of participating in agriculture in households with mobiles and smartphones is higher. Moreover, household size, income, age, gender, education, urban, remittances from abroad, fertilizer, pesticides, wheat, cotton, sugarcane, fruits and vegetables are the significant determinants of agricultural participation. To distinguish the financially included – not financially included households’ gap, this study employs a nonlinear Fairlie Oaxaca Blinder decomposition and finds that differences in fertilizer explain the substantial gap in agricultural participation. Likewise, this study tests the digital finance – no digital finance gap and finds that the difference in fertilizer is a significant contributor, describing a considerable gap in agricultural participation.Research limitations/implicationsEmpirically identified that various factors cause agricultural participation including financial inclusion and digital finance. Regarding the research limitation, this study only considers a developing country to analyze the findings. However, for future research, scholars may consider some other countries to compare the results and identify their differences.Practical implicationsThe accessibility of fertilizer can reduce the agricultural participation gap. However, increased income level, education and cotton and sugar production can also overcome the differences in agriculture participation between digital finance and no digital finance households.Originality/valueThis is the first study to decompose the difference in determinants of agricultural participation between financially and not financially included households.

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Factors of regional financial inclusion in Morocco

Elouaourti

Ezzahid

2024

Regional Science Policy & Practice

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The purpose of this paper is twofold: first, provide a comparative analysis of interregional and intraregional inequalities in terms of financial inclusion across Moroccan regions; second, explore the determinants of regional financial inclusion in a panel of 12 Moroccan regions. We used the principal component analysis methodology to construct our regional financial inclusion indexes, and the panel data estimation methodology to identify the determinants of regional financial inclusion. Our regional financial inclusion index shows that the majority of regions have a low level of financial inclusion. This is symptomatic of a very asymmetric distribution. For all regions, we found that intraregional inequalities in access to bank branches by locality/province or prefecture increase as we move away from the region’s main city. Empirical results indicated that a region’s human development level, as proxied by the Human Development Index (HDI), the size of its population, and the industrialization level of its economic fabric are the main determinants of a region’s financial inclusion level. The Moroccan financial system authorities have implemented several reforms (the banking law no. 2‐91‐967 of July 21, 1993) and strategies (National Financial Inclusion Strategy) aimed at promoting financial inclusion in Morocco; however, the increase in the level of financial inclusion at the macrolevel has not benefited all segments of the Moroccan population. This paper is original as, to our knowledge, it is the first to mobilize interregional and intraregional data, as opposed to previous studies that are national‐level oriented. Given the mapping of interregional and intraregional inequalities in access to, and use of, formal financial services, policymakers can rely on our index to formulate useful financial inclusion policies and to target rural localities, provinces or prefectures, and priority regions in Morocco’s National Financial Inclusion Strategy. The financial system should provide financial services tailored to regional financing needs. Moroccan policymakers should focus on filling gaps in levels of regional human development, as the latter is a key factor in regional financial inclusion.

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Causality between Financial Inclusion and Agricultural Sector Output in Nigeria

Cited by 6 publications

References 15 publications

Exploring the long-run relationship between financial inclusion and agricultural growth: evidence from Pakistan

Exploring the long-run relationship between financial inclusion and agricultural growth: evidence from Pakistan

Financial inclusion, digital finance and agricultural participation

Factors of regional financial inclusion in Morocco

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