Abstract
This study examines the dynamic impact of institutional quality (control of corruption, government effectiveness, political stability, regulatory quality, rule of law, and voice and accountability) on financial inclusion across seventy-three developing countries. We conduct multiple dynamic-panel-data approaches to address potential heterogeneity, cross-sectional dependency, and endogeneity issues. Our findings reveal that institutional quality promotes both the access to and the use of formal financial services in developing countries. More specifically, economic growth, human development index, domestic credit, financial development index (the depth & access to finance, and the efficiency of financial institutions and financial markets), and remittances significantly contribute to financial inclusion. Our findings also confirm our proposition that human development plays a significant role in driving financial inclusion. This study provides several practical policy implications to developing countries aiming to strengthen their institution-induced financial market deepening.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: Journal of International Financial Markets, Institutions and Money
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
