Financial Inclusion, Economic Growth and Human Well-Being Nexus: Empirics from Pakistan, India, China, Sri-Lanka, Bangladesh and Malaysia

Abstract

This article has examined the impact of financial inclusion on economic growth and human well-being in the case of Pakistan, India, China, Sri-Lanka, Bangladesh and Malaysia over the period of 1990 to 2018. Panel pooled regression has been applied for the examined the relationship among the selected variables of the model. The results show that financial development has a negative and insignificant impact on economic growth, but it has a negative and significant impact on human well-being. Number of bank branches have a positive but insignificant impact on economic growth, but number of bank branches have a positive and significant impact on human well-being. The loans to rural areas have a positive and significant impact on economic growth, whereas it has a positive but insignificant impact on human well-being. Money supply has a positive and significant impact on economic growth and human well-being at the same time. Foreign direct investment has a positive and significant impact on economic growth and human well-being. The results show that income inequality has a negative and significant impact on economic growth and human well-being. Economic development has a positive and significant impact on human well-being, this show that economic development can be enhanced for higher human well-being. The study suggests that for higher economic growth and human well-being, financial inclusion is playing an important role in the case of selected Asian countries.