Assessing the Key Determinants of Financial Inclusion: A Comprehensive Analysis of Socioeconomic and Institutional Factors on Economic Growth

This empirical study investigates the multifaceted relationship between financial inclusion and economic growth through a comprehensive analysis of key determinants and macroeconomic performance metrics. Utilizing panel data from 2013 to 2024 and applying System-Generalized Method of Moments (GMM) estimation, we examine the impact of account ownership, credit accessibility, and digital payment adoption on GDP growth across developing economies, with an emphasis on India. Findings reveal a statistically significant positive relationship between inclusion indicators and growth. The composite financial inclusion index exhibits a long-run cointegration relationship with economic growth, validating financial inclusion as a critical transmission mechanism for development. Results underscore the need for targeted interventions enhancing access for marginalized populations.