Financial Inclusion: Implication on Per Capita Income in Nigeria

Asian Economic and Financial Review

article

Abiola Ayopo BABAJIDE¹  Funso Abiodun OKUNLOLA¹  Adedoyin Isola LAWAL²  Victoria Bosede AKINJARE¹  Bukola Bose LAWAL-ADEDOYIN³ 

[1] Covenant University ,(Banking and Finance, College of Management & Social Sciences);Landmark University ,(Accounting and Finance, College of Business & Social Sciences), Omu Aran, Kwara State, Nigeria, #Sustainable Development Goals 17 ,(Partnership for the Goals) Research Cluster, Landmark University, Nigeria $ Sustainable Development Goal 6 ,(Clean Energy) Research Cluster, Landmark University, Omu Aran, Nigeria Sustainable Development Goal 1 ,(Zero Hunger) Research Cluster, Landmark University;Landmark University ,(Accounting and Finance, College of Business & Social Sciences)

关键词: Financial inclusion;    Urban credit;    Rural deposit;    Rural credit;    Urban deposit;    Per capita income.;   

DOI  :  10.18488/journal.aefr.2021.118.603.617

学科分类：社会科学、人文和艺术（综合）

来源: Asian Economic and Social Society

【 摘 要 】

This study examines the interplay of deposit money banks (DMBs) activities as a link between financial inclusion and economic growth per capita. To achieve the objective of the study, deposits mobilised in rural and urban areas, and credit disbursed to rural and urban areas, were explored to establish the link for a higher level of inclusion in the hierarchy. This study postulates that financial inclusion occurs at the primary, secondary, and tertiary hierarchical levels. Time series data from the Central Bank of Nigeria (CBN) statistical bulletin and the World Bank Financial Indicator for 33 years (1982 – 2018) were gathered to establish the link. Descriptive analysis, Johansen cointegration, vector error correction mechanism (VECM), and ordinary least squares regression tools were used as the estimation techniques. Findings show that although deposit mobilisation and credit disbursed in rural areas are statistically significant in explaining per capita growth and thereby fulfilling the primary level of inclusion in rural areas contrary to expectations, deposit mobilised and credit disbursed in urban areas are not statistically significant in explaining per capita growth. A long-run relationship of the series was also established. The study, therefore, recommends that secondary access inclusion should be implemented for optimal benefits of per capita growth.

【 授权许可】

CC BY