Bridging the Gap : Financial Inclusion as a catalyst for Economic Progress (Pakistan, India and Bangladesh)

Abstract

Ease of getting more financial products and services from financial institutions brings more financial inclusion in a country. So, developing financial infrastructure will ultimately contributes significantly and positively towards the growth of the economy, which will not only accelerate the economic progress but it will also create employment opportunities in the country. This research study tried to discover the significant contribution of inclusion in financial sectors towards the economic progress in these three of the following South Asian region countries namely Pakistan, India and Bangladesh. In our study, we used panel datasets spanning from year 2010 to year 2019. In this study we have used different types of panel data models, and other several measures of financial inclusion to reveal the relationship among development of an economy (progress) and inclusion in financial sectors. Results from various regression tests, and findings in this study confirmed that there is a positive impact on economic growth by financial inclusion in these countries, but the limit of effects varies across various measures of Financial Inclusion. Therefore, necessary steps must be taken by Policy makers of these countries to enhance progress in the activities of the financial inclusion in order to achieve economic progress.