{"title":"Unveiling the African growth puzzle: relationship between financial inclusion, debt sustainability and economic growth","authors":"Godwin Ahiase, Maya Sari, Denny Andriana, Nugraha Nugraha, Budi Supriatono Purnomo, Toni Heryana","doi":"10.1108/ijse-01-2024-0062","DOIUrl":null,"url":null,"abstract":"<h3>Purpose</h3>\n<p>This study examines the moderating role of debt sustainability on the nexus between financial and economic growth in African countries.</p><!--/ Abstract__block -->\n<h3>Design/methodology/approach</h3>\n<p>This study utilised data from various sources, such as the World Bank and International Monetary Fund databases, specifically the World Development Indicators and Financial Access Survey. The data covered the period from 2004 to 2021 and focused on 53 African countries to examine the moderating effect of debt sustainability on the relationship between financial inclusion and economic growth using a two-step generalised method of moments system with forward orthogonal deviations.</p><!--/ Abstract__block -->\n<h3>Findings</h3>\n<p>The study findings indicate a direct link between financial inclusion and economic growth in African nations. In particular, the availability and utilisation of mobile money services are significant factors in promoting financial inclusion. Our study also highlights that excessive debt can impede economic growth by limiting the capacity of financial institutions to offer loans and other vital financial services.</p><!--/ Abstract__block -->\n<h3>Practical implications</h3>\n<p>Policymakers in Africa should promote economic growth by prioritising financial inclusion through mobile money and ATMs while ensuring sustainable debt levels.</p><!--/ Abstract__block -->\n<h3>Originality/value</h3>\n<p>This study adds to the ongoing discussion on the relationship between FI and economic growth in African countries. It explores how debt sustainability affects this relationship, and emphasises the importance of finding a balance between financial inclusion and debt management for long-term economic growth and development.</p><!--/ Abstract__block -->\n<h3>Peer review</h3>\n<p>The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-01-2024-0062</p><!--/ Abstract__block -->","PeriodicalId":47714,"journal":{"name":"INTERNATIONAL JOURNAL OF SOCIAL ECONOMICS","volume":"13 1","pages":""},"PeriodicalIF":1.9000,"publicationDate":"2024-07-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"INTERNATIONAL JOURNAL OF SOCIAL ECONOMICS","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1108/ijse-01-2024-0062","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 0
Abstract
Purpose
This study examines the moderating role of debt sustainability on the nexus between financial and economic growth in African countries.
Design/methodology/approach
This study utilised data from various sources, such as the World Bank and International Monetary Fund databases, specifically the World Development Indicators and Financial Access Survey. The data covered the period from 2004 to 2021 and focused on 53 African countries to examine the moderating effect of debt sustainability on the relationship between financial inclusion and economic growth using a two-step generalised method of moments system with forward orthogonal deviations.
Findings
The study findings indicate a direct link between financial inclusion and economic growth in African nations. In particular, the availability and utilisation of mobile money services are significant factors in promoting financial inclusion. Our study also highlights that excessive debt can impede economic growth by limiting the capacity of financial institutions to offer loans and other vital financial services.
Practical implications
Policymakers in Africa should promote economic growth by prioritising financial inclusion through mobile money and ATMs while ensuring sustainable debt levels.
Originality/value
This study adds to the ongoing discussion on the relationship between FI and economic growth in African countries. It explores how debt sustainability affects this relationship, and emphasises the importance of finding a balance between financial inclusion and debt management for long-term economic growth and development.
Peer review
The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-01-2024-0062
期刊介绍：
The International Journal of Social Economics publishes original and peer-reviewed theoretical and empirical research in the field of social economics. Its focus is on the examination and analysis of the interaction between economic activity, individuals and communities. Social economics focuses on the relationship between social action and economies, and examines how social and ethical norms influence the behaviour of economic agents. It is inescapably normative and focuses on needs, rather than wants or preferences, and considers the wellbeing of individuals in communities: it accepts the possibility of a common good rather than conceiving of communities as merely aggregates of individual preferences and the problems of economics as coordinating those preferences. Therefore, contributions are invited which analyse and discuss well-being, welfare, the nature of the good society, governance and social policy, social and economic justice, social and individual economic motivation, and the associated normative and ethical implications of these as they express themselves in, for example, issues concerning the environment, labour and work, education, the role of families and women, inequality and poverty, health and human development.
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