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Research Report

Determinants of Financial Inclusion in Africa and OECD Countries

Kočenda Evžen, Eshun S. F.

: UK FSV – IES, (Praha 2023)

: Research Report IES WP 18/2023

: Financial Inclusion, Financial Inclusion Index, Sub-Saharan Africa

: http://library.utia.cas.cz/separaty/2023/E/kocenda-0572589.pdf

(eng): Sub-Saharan Africa (SSA) has been identified as one of the least financially inclusive regions in the world with a huge disparity in comparison to highly financially inclusive regions. Using a dynamic panel data analysis, we explore the factors influencing financial inclusion in Sub-Saharan Africa (SSA) using countries belonging to the Organisation for Economic Co-operation and Development (OECD) as a benchmark. We employ the System Generalized Method of Moments (GMM) estimator and assess 31 SSA and 38 OECD countries from 2000-2021. We show that the differences in trade openness, banks' efficiency, income, and remittances are some macro-level factors that explain the variation in financial inclusion levels. We highlight the importance of quality literacy policies, trade improvement with restrictions on cross-border capital flows, and a more efficient financial system to promote financial inclusion.

: AH

: 50202