Financial Inclusion, Institutional Quality and Financial Development: Empirical Evidence from OIC Countries

29 Pages Posted: 4 Jul 2019

See all articles by Minhaj Ali

Minhaj Ali

Zhongnan University of Economics and Law

Muhammad Imran Nazir

Zhongnan University of Economics and Law

Shujahat Haider Hashmi

Huazhong University of Science and Technology

Wajeeh Ullah

Zhongnan University of Economics and Law, Students

Date Written: June 23, 2019

Abstract

This unique study examines the moderation effect on the relationship between financial inclusion, and institutional quality on the financial development of 45 Organization of Islamic Cooperation (OIC) countries. For empirical analysis, panel data is used for the period 2000 to 2016. We use the Arellano-Bond Generalized Method of Moments (GMM) and 2sls method in our estimations to draw multidimensional results. The empirical results confirm the significant positive relationship between the FII, IQI, and FDP. Interestingly, we find that institutional quality moderates the financial inclusion and has a significant positive impact on financial development. Our findings are robust to the use of FII, IQI, and FDP. Therefore, policymakers must sensibly understand the pivotal role of financial inclusion and institutional quality in establishing sustainable future development of OIC countries.

Keywords: Financial Inclusion, Institutional Quality, Financial Development, GMM, 2sls, OIC

JEL Classification: C33, F43, G20, O17, P34.

Suggested Citation

Ali, Minhaj and Nazir, Muhammad Imran and Haider Hashmi, Shujahat and Ullah, Wajeeh, Financial Inclusion, Institutional Quality and Financial Development: Empirical Evidence from OIC Countries (June 23, 2019). Available at SSRN: https://ssrn.com/abstract=3408639 or http://dx.doi.org/10.2139/ssrn.3408639

Minhaj Ali (Contact Author)

Zhongnan University of Economics and Law ( email )

Wuhan
China

Muhammad Imran Nazir

Zhongnan University of Economics and Law ( email )

WenQuan Building, 182# Nanhu Avenue
East Lake High-tech Development Zone
Wuhan, Hubei 430073
China

Shujahat Haider Hashmi

Huazhong University of Science and Technology ( email )

Wuhan
China

Wajeeh Ullah

Zhongnan University of Economics and Law, Students ( email )

Wuhan
China

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
78
Abstract Views
438
rank
344,067
PlumX Metrics