Effects of Financial Inclusion on Economic Growth and Economic Development in Six Asian Countries

Abstract

A comprehensive financial plan is a prerequisite for both developed and developing nations, as every nation has to
enhance economic growth and economic development at the same time. This study analyzes the impacts of financial
inclusion on economic growth and economic development in six Asian countries. Time series data from 1997 to
2016 is used for empirical analysis. Data is collected from the Central Banks of selected countries, World Bank and
IMF databases. Gross domestic product, human development index, credit to private Sector, and income inequality,
loan to rural areas, broad money, and foreign direct investment are selected indicators for the study. Panel
methodologies are used for empirical analysis. The results of the study show that financial inclusion has a deep-
rooted impact on economic growth as well as economic development in the case of selected Asian countries. The
study recommends that strong financial inclusion can be helpful for poverty reduction in developing countries.