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Universal Financial Inclusion and Economic Growth Linkage – Evidence from Emerging Indian Economy

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This paper examines the linkages of various financial inclusion parameters on economic growth for an emerging economy viz., India to review the policy measures implemented in this sphere. In this context, in addition to standard measures of financial inclusion, this study incorporates auxiliary indicators also like mobile and card statistics, usage of electronic channels, pension and insurance subscribers to obtain a comprehensive assessment of the impact of financial inclusion on economic growth in the Indian economy. Bayesian vector autoregression is applied that is established to provide robust results even in small sample sizes and examines the role played by individual measures of financial inclusion separately on overall growth. It is evidenced that factors like branch network, electronic remittance services, and insurance schemes display a significant role in affecting economic growth in India.

Abstract

This paper examines the linkages of various financial inclusion parameters on economic growth for an emerging economy viz., India to review the policy measures implemented in this sphere. In this context, in addition to standard measures of financial inclusion, this study incorporates auxiliary indicators also like mobile and card statistics, usage of electronic channels, pension and insurance subscribers to obtain a comprehensive assessment of the impact of financial inclusion on economic growth in the Indian economy. Bayesian vector autoregression is applied that is established to provide robust results even in small sample sizes and examines the role played by individual measures of financial inclusion separately on overall growth. It is evidenced that factors like branch network, electronic remittance services, and insurance schemes display a significant role in affecting economic growth in India.

참고문헌 (64)

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