Green finance, financial inclusion and agricultural productivity in Africa

The study investigates the impact of green finance and financial inclusion on agricultural production in Africa. Fixed effects and Linear Dynamic Panel techniques are employed to estimate bank- and country-level data from 29 African countries over the period 2002–2013. The results suggest that green finance potentially increases financial inclusion. Both financial usage and stock market access have no significant effect on agricultural production, but higher level of financial access potentially increases agricultural production. Also, an increase in green finance increases agricultural production. Finally, the results indicate that the influence of green finance on financial usage and stock market access, respectively, has a negative and a positive spillover effect on agricultural production.