Financial Inclusion and GDP per-capita Nexus: Evidence from Zimbabwe


Authors : Shame Mukoka; Tatenda Pamela Chipanga

Volume/Issue : Volume 6 - 2021, Issue 1 - January

Google Scholar : http://bitly.ws/9nMw

Scribd : https://bit.ly/2NnbL6v

This study sought to determine the impact of financial inclusion on GDP per-capita for Zimbabwe. The variables of the study were GDP per-capita, deposit interest rate, lending interest rate, domestic loans, and bank deposits. The study used data for the period 1980 to 2019 obtained from World Bank and Reserve Bank of Zimbabwe databases. The VECM model was adopted. The results suggest that there is statistically significant relationship between Financial Inclusion and GDP percapita in Zimbabwe. Basing on the results, the study recommends that government must pursue financial inclusion policies which are consistent with growth. The government must remove barriers to financial services and products with every sense of objectivity, economic management dexterity and in line with global best practices. The government must, therefore, adopt the best economic management policies to guide the national financial inclusion strategy (NFIS), that is, international best practices and policies in guiding domestic financial system reforms in order to ensure maximum benefits of such policies to the economy. The government must formulate a strategy that will identify policies that are hurting the economy and reverse such by adopting a more pragmatic approach.

Keywords : Financial Inclusion, GDP per-capita, VECM

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