How Does Financial Inclusion Affect Economic Growth, Poverty, Income Inequality, and Financial Stability in GCC Countries?
Abstract
This study focuses on the impact of financial inclusion on economic growth, poverty, income inequality, and financial stability in GCC countries. Financial inclusion is measured using three dimensions: banking penetration, access to banking services, and use of banking services. The poverty ratio below the national poverty line and the Gini coefficient are used as indicators of poverty and income inequality, while financial stability is measured by the Bank Z-Score and bank nonperforming loans. The findings of the hypothesis test indicate that all dimensions of financial inclusion have a significant impact on economic growth, poverty, income inequality, and financial stability. However, the partial impact of financial inclusion on these factors in six GCC countries has not been fully optimized. Therefore, the study suggests that governments should consider the results and develop strategies to increase financial inclusion to achieve sustainable development and enhance the welfare of their citizens.
Keywords: financial inclusion, economic growth, poverty, income inequality.
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