Financial Inclusion and Economic Growth: Evaluating Policy Interventions in Emerging Markets

Abstract

Financial inclusion serves as a crucial mechanism for fostering economic growth, especially in emerging economies, by expanding access to affordable financial services for traditionally marginalized groups. This research investigates the linkage between financial inclusion and GDP per capita by utilizing panel data from several years across selected emerging markets. It evaluates core indicators, including account ownership, utilization of formal credit, and access to digital financial platforms, in conjunction with variables such as institutional quality and foreign direct investment. The results demonstrate a statistically significant and positive relationship between financial inclusion and economic growth, with stronger effects observed in countries possessing robust institutional systems and advanced digital infrastructure. Nevertheless, regional disparities highlight the importance of context-specific policy responses. The study concludes that while financial inclusion has considerable economic benefits, its success is contingent upon the presence of sound governance and appropriate regulatory support.