Analyzing the Impact of Financial Inclusion on Economic Growth in Bangladesh

Abstract

Financial inclusion is touted one of the principal drivers for economic growth for an economy. The study aims to explore the impact of financial inclusion on economic growth in Bangladesh. In my study, I used the number of loan accounts as the proxy for financial inclusion. Using time series data from spans from 2004-2021, the study revealed that there exists a long-run relationship between GDP, financial inclusion, and other macroeconomic variables in Bangladesh. The study also found that financial inclusion had a positive impact on economic growth of Bangladesh during the study period. Therefore, the policymakers and the central bank of Bangladesh as the apex authority of financial system should promote financial inclusion activities to achieve sustainable economic growth.