Assessing the Impact of Financial Inclusion on Economic Growth – Evidence from Selected European Countries

Abstract

This study uses data from a few chosen European nations from 2008 to 2020 to examine how financial inclusion affects economic growth in those nations. Currently, the financial industry has expanded globally and has ingrained itself into peoples' daily lives. The number of commercial bank branches, the population, carbon dioxide emissions, and mobile cellular subscriptions are the variables employed in this study to quantify financial inclusion as we investigate their impact on GDP growth. Meanwhile, in the six chosen European countries, CO2 emissions have a negative, considerable influence on GDP growth. As a result, we advise policymakers in European nations to step up their efforts to broaden public access to financial institutions and to advance the idea of financial inclusion in their nations because doing so will boost GDP growth rates and raise citizens' living standards.