Nexus Between Financial Inclusion And The Economic Development: ‎ An ‎Empirical Study Evidence From Algeria.‎

Abstract

In the emerging governments, the share of the population with access ‎ to basic financial services tends to the lag significantly behind the developed ‎economies. This can be chalked up to the relatively smaller size and ‎ sophistication of the banking sector, lower incomes and a higher degree of ‎ informal employment and patchy identification records prevalent in less ‎ developed countries. The aim of the present paper is to examine the ‎relationship between the financial inclusion and the economic growth in ‎ Algeria. The Johansen cointegration test was carried out to achieve our ‎ objective using annual data covering the period from 2004 to 2020. The ‎main findings concluded that there is a long-run relationship among the ‎ variables, while the VECM outputs highlighted a positive impact of usage of ‎ the financial services and borrowing from the commercial banks on ‎ economic growth and a negative impact conducted by outstanding deposits ‎indicator.‎