The Impact of Financial Inclusion on Economic Growth in Algeria

This research explores the impact of financial inclusion on economic growth in Algeria during the period 2004–2021. To achieve this objective, the researcher utilized the Bootstrapped coefficient estimates method, recognized for its accuracy in analyzing relationships within economic data. The study establishes a significant and noticeable relationship between financial inclusion and economic growth, highlighting the critical role of inclusive financial services in fostering economic development. Specifically, the findings emphasize that borrowing from commercial banks and the availability of ATMs have a positive and meaningful effect on economic expansion. These elements facilitate access to credit and enhance financial accessibility, which are crucial drivers of growth. On the other hand, the study identifies a surprising negative influence of the total number of bank branches on economic growth. This could point to inefficiencies or structural challenges within the banking system that warrant further investigation. The findings underline the need for tailored financial policies.