TY - JOUR
T1 - Financial inclusion, the shadow economy and economic growth in developing economies
AU - Younas, Zahid Irshad
AU - Qureshi, Atiqa
AU - Al-Faryan, Mamdouh Abdulaziz Saleh
N1 - Publisher Copyright:
© 2022
PY - 2022/9/1
Y1 - 2022/9/1
N2 - This study explores the impact of the financial inclusion and size of the shadow economy on the economic growth of developing economies over the period 2008–2017. The data for the endogenous, exogenous and control variables were collected from the World Development Indicators, the International Monetary Fund's (IMF) Financial Access Survey (FAS) and Medina and Schneider's global database (2019). The study applies a panel ordinary least square (OLS) fixed effect, a two-step difference generalised method of moments (GMM) and panel Granger causality approach. The results reveal that financial inclusion has a positive and statistically significant impact on economic growth; while in developing economies, the size of the shadow economy has a significant negative impact on economic growth. The findings remain robust to alternative econometric estimations. The asymmetric results in different countries provide practical insights for governments, policymakers and regulators.
AB - This study explores the impact of the financial inclusion and size of the shadow economy on the economic growth of developing economies over the period 2008–2017. The data for the endogenous, exogenous and control variables were collected from the World Development Indicators, the International Monetary Fund's (IMF) Financial Access Survey (FAS) and Medina and Schneider's global database (2019). The study applies a panel ordinary least square (OLS) fixed effect, a two-step difference generalised method of moments (GMM) and panel Granger causality approach. The results reveal that financial inclusion has a positive and statistically significant impact on economic growth; while in developing economies, the size of the shadow economy has a significant negative impact on economic growth. The findings remain robust to alternative econometric estimations. The asymmetric results in different countries provide practical insights for governments, policymakers and regulators.
KW - developing regions
KW - economic growth
KW - financial inclusion
KW - shadow economy
UR - http://www.scopus.com/inward/record.url?scp=85128254006&partnerID=8YFLogxK
U2 - 10.1016/j.strueco.2022.03.011
DO - 10.1016/j.strueco.2022.03.011
M3 - Article
AN - SCOPUS:85128254006
SN - 0954-349X
VL - 62
SP - 613
EP - 621
JO - Structural Change and Economic Dynamics
JF - Structural Change and Economic Dynamics
ER -