Financial Inclusion, Economic Growth, And Asean Economies: Empirical Evidence From Panel Pooled Mean Group-Autoregressive Distributed Lag.

This empirical study examines the long-run and short-run relationship between financial inclusion and economic growth in seven Association of Southeast Asian Nations (ASEAN) countries including Indonesia, Malaysia, the Philippines, Thailand, Vietnam, Cambodia, and Lao PDR. Using Pooled Mean Group Au...

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Detalles Bibliográficos
Publicado en:Journal of Namibian Studies Vol. 35; pp. 78 - 100
Autores principales: Nantharath, Phouthakannha, Eungoo Kang
Formato: Artículo
Publicado: Society of Cultural Studies & Social Sciences 2023 Special Issue
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: Financial Inclusion, Economic Growth, And Asean Economies: Empirical Evidence From Panel Pooled Mean Group-Autoregressive Distributed Lag.
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        au:
          Nantharath, Phouthakannha
          Eungoo Kang
        affil: Becamex Business School, Eastern International University, Binh Duong Province, Vietnam
      su:
        ASEAN
        Economic expansion
        Automated teller machines
        Branch banks
        Panel analysis
        Banking industry
      sug:
        subj:
          ASEAN
          Economic expansion
          Automated teller machines
          Branch banks
          Panel analysis
          Banking industry
      keyword:
        developing economies
        economic growth
        financial development
        financial inclusion
        pooled mean group-ARDL
      ab: This empirical study examines the long-run and short-run relationship between financial inclusion and economic growth in seven Association of Southeast Asian Nations (ASEAN) countries including Indonesia, Malaysia, the Philippines, Thailand, Vietnam, Cambodia, and Lao PDR. Using Pooled Mean Group Autoregressive Distributed Lag (PMG-ARDL) model, the analysis regresses three financial inclusion determinants namely number of commercial bank branches, account ownership, and automated teller machines (ATM) against the GDP per capita, the proxy of economic growth, with a designated set of control variables. The panel data covers the period of 2000 to 2021. The findings contribute to the literature on the subject by providing empirical evidence of a positive and statistically significant long-run relationship between financial inclusion determinants and GDP per capita in the ASEAN region. The study's findings indicate that, in a long run, a 1% increase in commercial bank numbers corresponds to a 0.57 % increase in GDP growth, while a 1% increase in number of account ownership is linked to a 1.03 % increase in GDP growth. However, evident of the effects of numbers of ATM is less significant, although a 1% increase of this variable is associated with a 0.23 % rise in GDP growth. The short-run relationship between financial inclusion and economic growth is mixed and varies across different estimation lags, highlighting the complexity of the relationship. The study offers important policy implications for ASEAN economies and beyond, suggesting that policymakers in the region need to continue promoting financial inclusion for long-run positive effects on economic growth.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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