Financial Inclusion between Financial Innovation and Economic Growth: A Study of Lower Middle Income Economies

Abstract

Purpose: Financial inclusion is a key concern that has achieved much impulsion in the last two decades internationally. It has the scope of reporting of financial scheme and institutions to the underserved community in the economy. This study examined the effect of financial innovation on economic growth with the mediation of financial inclusion.
 Design/Methodology/Approach: To address the relationship researchers in this study have used measures from a dataset of low and lower middle income group economies over a sample period from 2010-2017.
 Findings: The results of this study shows that financial innovation creates opportunities for financially excluded segment of the society which results in financial inclusion that leads to economic growth of low and lower middle economies.
 Implications/Originality/Value: Study will provide new evidence that contributes new ways to improve low and lower middle economies towards economic growth by promoting financial innovation and financial inclusion.