Financial Accessibility and Economic Growth-Evidence from SAARC Countries.

Thomas Asha E., M. Bhasi, R. Chandramouli (2017). Financial Accessibility and Economic Growth-Evidence from SAARC Countries. Contemplations on New Paradigms in Finance, Directorate of Public Relations and Publications, CUSAT, 32-52. ISBN: 978-93-80095-99-8

16 Pages Posted: 14 Mar 2018

Date Written: March 12, 2017

Abstract

This paper investigates the empirical evidence on the relationship between financial accessibility and development in a nation. The primary objective was to test the conventional hypothesis which states that improved financial accessibility leads to financial development and economic growth. Initially, a dynamic panel model on the relationship between financial accessibility and economic growth was built with a set of controlled variables. Several financial access indicators from South Asian low and middle income economies were used for analysis. The study period was from 2007 to 2015, applying the Generalized Method of Moments (GMM) estimators to estimate their relationship. From these estimations, it was found that high financial accessibility leads to high income in general. In addition, it was found that an increase in financial access indicators had a greater impact on economic growth in low-income countries than it did on economic growth in middle-income countries.

Keywords: Economic Development, Financial Accessibility, Financial Services, Financial Inclusion, GMM

JEL Classification: O01, O18

Suggested Citation

Thomas, Asha E., Financial Accessibility and Economic Growth-Evidence from SAARC Countries. (March 12, 2017). Thomas Asha E., M. Bhasi, R. Chandramouli (2017). Financial Accessibility and Economic Growth-Evidence from SAARC Countries. Contemplations on New Paradigms in Finance, Directorate of Public Relations and Publications, CUSAT, 32-52. ISBN: 978-93-80095-99-8. Available at SSRN: https://ssrn.com/abstract=3138680

Asha E. Thomas (Contact Author)

Mahatma Gandhi University ( email )

Kalamassery
Kerala
India

HOME PAGE: http://www.stpauls.ac.in/static/contactus.aspx

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