Does Financial Inclusiveness Affect Economic Growth? New Evidence Using a Dynamic Panel Threshold Regression

This study examines the impact of financial inclusiveness on economic growth using a sample 60 countries from 2010 to 2017. A new Index Financial Inclusion (IFI) has been constructed for each country determine their level across time. The main findings dynamic panel threshold estimation technique revealed effect in inclusiveness-growth nexus. We find that is beneficial and positively affects at lower or upper levels different regime. Furthermore, inclusion positive more significant growth-enhancing among less developed emerging market relative ones. Thus, policymakers need prioritize efforts raise place its greater these countries.