RELATIONSHIP BETWEEN FINANCIAL INCLUSION, TRADE, AND ECONOMIC GROWTH

Authors

  • Syeda Zuimah Wasim Applied Economics Research Centre (AERC), University of Karachi, Karachi, Pakistan
  • Khurram Iftikhar Applied Economics Research Centre (AERC), University of Karachi, Karachi, Pakistan
  • Syed Zia Abbas Rizvi Applied Economics Research Centre (AERC), University of Karachi, Karachi, Pakistan

DOI:

https://doi.org/10.52567/pjsr.v4i03.757

Abstract

This study inspects relation between financial inclusion, trade, and economic growth in twenty-four developing countries namely Algeria, Azerbaijan, Bangladesh, Botswana, Brazil, Colombia, Egypt, Kuwait, Madagascar, Mauritania, Mauritius, Namibia, Nigeria, Moldova, Pakistan, Paraguay, Peru, Rwanda, Tajikistan, Tanzania, Thailand, Uganda, Vanuatu, Zambia from period 2004-2020(both inclusive) by scrutinizing effect of financial inclusion and trade on economic growth with an emphasis on whether financial inclusion catalyzes ‘the influence of trade on economic growth by employing Newey West standard approach, Feasible Generalized Least Square, Pooled Ordinary Least Square regression, Fixed Effect Model and Random Effect Model. Results found a strong, significant, and positive association linking financial inclusion and trade with economic growth. Policy implications are developing countries should frame and execute pro-growth policies to enhance financial inclusion which will boost the impact of trade on growth. Moreover, developing economies should establish more multilateral trade agreements, diversify their export baskets and ensure that trade happens through formal financial institutions

Keywords: Financial inclusion index, Trade, Economic growth, FGLS.

JEL Codes: E01, F1, G53

Author Biographies

  • Syeda Zuimah Wasim, Applied Economics Research Centre (AERC), University of Karachi, Karachi, Pakistan

    MPhil Scholar 

  • Khurram Iftikhar, Applied Economics Research Centre (AERC), University of Karachi, Karachi, Pakistan

    Assistant Professor

  • Syed Zia Abbas Rizvi, Applied Economics Research Centre (AERC), University of Karachi, Karachi, Pakistan

    Assistant Professor

Additional Files

Published

2022-09-30

Issue

Vol. 4 No. 03 (2022): Pakistan Journal of Social Research PJSR

Section

Research Article

License

Copyright (c) 2022 Syeda Zuimah Wasim, Khurram Iftikhar, Syed Zia Abbas Rizvi

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Except where otherwise noted, content on this site is licensed under a Creative Commons Attribution 4.0 International License, which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

How to Cite

[1]
“RELATIONSHIP BETWEEN FINANCIAL INCLUSION, TRADE, AND ECONOMIC GROWTH”, Pak. J, Soc. Sci., vol. 4, no. 03, pp. 675–684, Sep. 2022, doi: 10.52567/pjsr.v4i03.757.