Does Financial Inclusion stimulate the Economic Growth in the Sudan? (2006-2020)

The paper aimed to answer the question: does financial inclusion stimulate the economic growth in the Sudan? 2006-2020. The researcher has used some financial inclusion indices according to the World Bank indices (the volume of credit to the private sector, the number of Automated Teller Machines, the number of bank branches, the deposits in the banking system, In addition to the doing business index). To measure this effect, the researcher has used the descriptive analytical approach based on Principal Component Analysis (PCA) as well as multiple regression analysis using (SPSS 26) due to its high accuracy in reducing the number of independent variables to factors that have more influence on the dependent variable with the highest rate of variance. Accordingly, the paper found that the first three factors have an impact on economic growth in Sudan by 87.006% loadings. The paper recommended that: The government, represented by financial and banking institutions, should facilitate access to banking and financial institutions to collect the savings of individuals which helps in capital accumulation that in turn contributes to surge production as well as economic growth. Additionally, adopting an inclusive electronic system that includes a large number of vulnerable segments in society.

Publication Details

Journal
Humanitarian and Natural Sciences Journal
Published
2024-09-01
DOI
https://doi.org/10.53796/hnsj59/5
Primary Topic
Microfinance and Financial Inclusion
Type
article
Field-Weighted Citation Impact
0.00
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article

Does Financial Inclusion stimulate the Economic Growth in the Sudan? (2006-2020)

Humanitarian and Natural Sciences Journal
Microfinance and Financial Inclusion
article

Does Financial Inclusion stimulate the Economic Growth in the Sudan? (2006-2020)

article en

Abstract

The paper aimed to answer the question: does financial inclusion stimulate the economic growth in the Sudan? 2006-2020. The researcher has used some financial inclusion indices according to the World Bank indices (the volume of credit to the private sector, the number of Automated Teller Machines, the number of bank branches, the deposits in the banking system, In addition to the doing business index). To measure this effect, the researcher has used the descriptive analytical approach based on Principal Component Analysis (PCA) as well as multiple regression analysis using (SPSS 26) due to its high accuracy in reducing the number of independent variables to factors that have more influence on the dependent variable with the highest rate of variance. Accordingly, the paper found that the first three factors have an impact on economic growth in Sudan by 87.006% loadings. The paper recommended that: The government, represented by financial and banking institutions, should facilitate access to banking and financial institutions to collect the savings of individuals which helps in capital accumulation that in turn contributes to surge production as well as economic growth. Additionally, adopting an inclusive electronic system that includes a large number of vulnerable segments in society.

Humanitarian and Natural Sciences Journal
Reduced inequalities
Openalex Percentile: Top 82%
Microfinance and Financial Inclusion
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Does Financial Inclusion stimulate the Economic Growth in the Sudan? (2006-2020) · Humanitarian and Natural Sciences Journal (2024) | TGRS Research Map | TGRS