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Financial Inclusion: A Panacea for Balanced Economic Development

Okoye, Lawrence U. and Adetiloye, K. A. and ERIN, Olayinka and Modebe, Nwanneka J. (2016) Financial Inclusion: A Panacea for Balanced Economic Development. In: 28th IBIMA Conference: Theme -Vision 2020: Innovation Management, Development Sustainability, and Competitive Economic Growth, 2016.

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Abstract

The major objective of this paper was to determine the effect of financial inclusion on economic growth and development in Nigeria using historical data on selected variables over the period 1986- 2015. Ordinary Least Squares regression technique was adopted. Financial inclusion was measured inthe study using loan to deposit ratio (LDR), financial deepening indicators (FDI), loan to rural areas (LRA), and branch network (Bbranch). Measures of financial deepening adopted in the study are ratios of private sector credit to GDP and broad money supply to GDP. Economic growth wasproxied as growth in gross domestic product (GDP) over successive periods while per capita income (PCI) was adopted as a measure of poverty and hence an index of development. The main findings are (i) credit delivery to the private sector (an index of financial inclusion) has not significantly supported economic growth in Nigeria (ii) financial inclusion has promoted poverty alleviation in Nigeria through rural credit delivery. The study recommends that the monetary authorities should not only deepen financial inclusion efforts through enhanced credit delivery to the private sector but should also strengthen the regulatory framework in order to ensure efficient and effective resource allocation and utilization.

Item Type: Conference or Workshop Item (Lecture)
Uncontrolled Keywords: Financial inclusion, Poverty alleviation, Economic growth, Financial deepening.
Subjects: H Social Sciences > HB Economic Theory
H Social Sciences > HF Commerce
H Social Sciences > HF Commerce > HF5601 Accounting
Divisions: Faculty of Law, Arts and Social Sciences > School of Social Sciences
Depositing User: Mrs Patricia Nwokealisi
Date Deposited: 22 Jun 2017 09:25
Last Modified: 29 Jun 2017 15:28
URI: http://eprints.covenantuniversity.edu.ng/id/eprint/8433

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