Financial Inclusion and Inclusive Growth: What does it Mean for Sri Lanka?

Abstract

The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent.

Factors Influencing Saving Behaviour of Nigerians

“…For example; Saniya et al, (2021) establish that labour force participation rate has the strongest correlation with account ownership-a measure of financial inclusion. This agrees with Arandara & Gunasekera (2020) and Demirguckunt & klapper (2012) with the later adding that high-growth, small and medium enterprises in Africa are less likely to use formal financing, which suggests formal financial system is not serving the needs of enterprises with growth opportunities. As regards to the European countries, Coffinet & Jadeau (2017), argue that factors responsible for financial exclusion include old age, unemployment, low-income household and low level of education.…”

Determinants of Inclusive Economic Growth in Latin America

“…For example, Mitra & Das, [15], define inclusive growth as sustainable economic progress through employment generation, social protection, and public infrastructure development from the financial, environmental, and participatory scopes. For its part, Arandara & Gunasekera, [16], mention that inclusive growth means expanding the economy and providing equitable conditions for investment, which would generate better employment opportunities. Also, according to Sun, Liu & Tang, [17], inclusive growth is seen as a concept that seeks to ameliorate people's lives, alleviating the problems of growing income inequality and extreme poverty worldwide.…”

A tale of the financial inclusion-growth nexus and the degree of financial inclusion: a dynamic panel approach on selected developing countries

“…Most of the previous studies, both cross and single country analyze, show a positive linear impact of financial inclusion on economic growth (Anand and Chhikara, 2013;Dixit and Ghosh, 2013;Zulfiqar et al, 2016;Sethy, 2016;Neaime and Gaysset, 2018;Arandara and Gunasekera, 2020). However, these studies overlook the impact of the degree of financial inclusion on economic growth.…”

“…Moreover, higher savings ensure adequate liquidity in the financial system and promote more significant capital accumulation, thus contributing heavily to accelerated economic growth (Rioja and Valev, 2004; Park and Mercado, 2015; Park and Mercado, 2018; Kim et al , 2018). Contributions to ensure inclusive growth and equal distribution of income enabled financial inclusion to receive greater attention of the policymakers and the economists, especially in the developing economies around the globe (Dixit and Ghosh, 2013; Zulfiqar et al , 2016; Migap et al , 2015; Sethy, 2016; Arandara and Gunasekera, 2020).…”