Journal of Commerce and Accounting Research

Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

The Impact of Financial Inclusion on the Economic Growth of India:An Emapirical Analysis


Affiliations
1 Research Scholar, Department for Commerce, Aligarh Muslim University, Aligarh, Uttar Pradesh, India
2 Professor, Department of Commerce, Aligarh Muslim University, Aligarh, Uttar Pradesh, India
     

   Subscribe/Renew Journal


Financial inclusion refers to universal access to a wide range of financial services at a reasonable cost. These include not only banking products but also other financial services such as insurance and equity. Financial inclusion broadens the resource base of the financial system by incorporating a culture of savings among the large segment of the rural population and plays its own role in the economic development. The present study aims to investigate the impact of financial inclusion on the economic growth over a period of ten years from 2005-06 to 2015-16. GDP at current price is taken as the proxy measure for economic growth whereas financial inclusion is measured by number of Automatic Teller Machines (ATMs) and credit-deposit ratio (CDR). Secondary data is used and the data has been analyzed by using multiple regression analysis. Before analysis, the adequacy of the data has been checked. To check the multicollinearity and Autocorrelation problems, Variance Inflation Factor and Durbin-Watson tests have been used. Results of the study found that the ATMs have positive significant impact on the GDP whereas the CDR has positive insignificant impact on the GDP of the country.

Keywords

Financial Inclusion, Banks, GDP, ATM, Credit-Deposit Ratio.
Subscription Login to verify subscription
User
Notifications
Font Size


  • Asuming, P. O., Osei-agyei, L. G., & Ibrahim, J. (2018). Financial inclusion in sub-saharan africa: Recent trends and determinants financial inclusion in sub-saharan africa: Recent trends and. Journal of African Business, 1-23. Retrieved from https://doi.org/10.1080/15228916.2018.1484209

  • Bayero, & Abdullahi, M. (2015). Effects of cashless economy policy on financial inclusion in nigeria: An exploratory study. Procedia - Social and Behavioral Sciences, 172, 49-56. Retrieved from https://doi.org/10.1016/j.sbspro.2015.01.334

  • Beck, T., Senbet, L., & Simbanegavi, W. (2015). Financial inclusion and innovation in africa: An overview. Journal of African Economies, 24(December), i3-i11. Retrieved from https://doi.org/10.1093/jae/eju031

  • Cnaan, R. A., Moodithaya, M. S., & Handy, F. (2012). Financial inclusion: Lessons from rural south india. Journal of Social Policy, 41(1), 183-205. Retrieved from https://doi.org/10.1017/S0047279411000377

  • Friedline, T., & Rauktis, M. (2014). Young people are the front lines of financial inclusion: A review of 45 years of research. Journal of Consumer Affairs, 48(3), 535-602. Retrieved from https://doi.org/10.1111/joca.12050

  • Ghosh, J. (2013). Microfinance and the challenge of financial inclusion for development. Cambridge Journal of Economics, 37(6), 1203-1219. Retrieved from https://doi.org/10.1093/cje/bet042

  • Gounasegaran, C., Kuriakose, F., & Iyer, D. K. (2013). Financial inclusion: Progress so far. Banking and Finance, 25-29. Retrieved fromhttp://www.efymag.com/admin/issuepdf/ 25-29_Financial Inclusion_Sep-13.pdf

  • Iqbal, B. A., & Sami, S. (2017). Role of banks in financial inclusion in India. Contaduría y Administración, 62(2), 644-656. Retrieved from https://doi.org/10.1016/j.cya.2017.01.007

  • Jones, P. A. (2008). From tackling poverty to achieving financial inclusion-the changing role of british credit unions in low income communities. Journal of Socio-Economics, 37(6), 2141-2154. Retrieved from https://doi.org/10.1016/j.socec.2007.12.001

  • Kapoor, A. (2014). Financial inclusion and the future of the indian economy. Futures, 56, 35-42. Retrieved from https//doi.org/10.1016/j.futures.2013.10.007

  • Khaki, A. R., & Sangmi, M.-D. (2017). Does access to finance alleviate poverty? A case study of SGSY beneficiaries in Kashmir Valley. International Journal of Social Economics, 44(8), 1032-1045. Retrieved from https://doi.org/10.1108/IJSE-10-2015-0277

  • Kumar, N. (2013). Financial inclusion and its determinants: Evidence from India. Journal of Financial Economic Policy, 5(1), 4-19. Retrieved from https://doi.org/10.110817576381311 317754

  • Lenka, S. K., & Bairwa, A. K. (2016). Does financial inclusion affect monetary policy in SAARC countries ? Cogent Economics & Finance, 95(1), 1-8. Retrieved from https://doi.org/10.1080/23322039.2015.1127011

  • Nelson, C. (2010). Don’t mourn, organize. Academe, 96(1), 10-14. Retrieved from https://doi.org/10.1002/jid

  • Sharma, D. (2016). Nexus between financial inclusion and economic growth. Journal of Financial Economic Policy, 8(1), 13-36. Retrieved from https://doi.org/10.1108/JFEP-01-2015-0004

  • Wang, X., & Guan, J. (2017). Financial inclusion: Measurement, spatial effects and influencing factors. Applied Economics, 49(18), 1751-1762. Retrieved from https://doi.org/10.1080/00036846.2016.1226488

  • Wong, K. (2008). Economic growth and resource allocation: The case of China. Journal of Chinese Economic and Foreign Trade Studies, 1(2), 105-121. Retrieved from https://doi.org/10.1108/17544400810885933

  • Zulkhibri, M. (2016). Macroeconomics and finance in emerging market economies financial inclusion, financial inclusion policy and islamic finance. Macroeconomics and Finance in Emerging Market Economies, 9(3), 303-320. Retrieved from https://doi.org/10.1080/17520843.2016.1173716


Abstract Views: 209

PDF Views: 0




  • The Impact of Financial Inclusion on the Economic Growth of India:An Emapirical Analysis

Abstract Views: 209  |  PDF Views: 0

Authors

Zubair Ahmad Sofi
Research Scholar, Department for Commerce, Aligarh Muslim University, Aligarh, Uttar Pradesh, India
M. Nasir Zamir
Professor, Department of Commerce, Aligarh Muslim University, Aligarh, Uttar Pradesh, India

Abstract


Financial inclusion refers to universal access to a wide range of financial services at a reasonable cost. These include not only banking products but also other financial services such as insurance and equity. Financial inclusion broadens the resource base of the financial system by incorporating a culture of savings among the large segment of the rural population and plays its own role in the economic development. The present study aims to investigate the impact of financial inclusion on the economic growth over a period of ten years from 2005-06 to 2015-16. GDP at current price is taken as the proxy measure for economic growth whereas financial inclusion is measured by number of Automatic Teller Machines (ATMs) and credit-deposit ratio (CDR). Secondary data is used and the data has been analyzed by using multiple regression analysis. Before analysis, the adequacy of the data has been checked. To check the multicollinearity and Autocorrelation problems, Variance Inflation Factor and Durbin-Watson tests have been used. Results of the study found that the ATMs have positive significant impact on the GDP whereas the CDR has positive insignificant impact on the GDP of the country.

Keywords


Financial Inclusion, Banks, GDP, ATM, Credit-Deposit Ratio.

References