Financial Inclusion and Sustainability of Economic Development: Empirical Results from Selected EU Member States

The primary objective of the present study is to verify the anticipated positive impact of financial inclusion on the economic development of selected European economies between 2014 and 2023. This will be achieved by means of econometric models and the authors’ aggregate indices. The primary sources of data were statistical databases provided by the International Monetary Fund, World Development Indicators, and Eurostat. The findings of the study suggest that there is no clear link between the degree of financial inclusion and economic development among European Union member states. They also indicate that the impact of financial inclusion varies across European countries, both before and after the Coronavirus pandemic. However, it is imperative to exercise caution when interpreting these findings, primarily due to the structural break caused by the economic downturn in 2020 and the relatively small sample size. It is evident that in countries exhibiting a high level of development, certain standard variables employed to measure financial inclusion are found to be inadequate. The results of the study could be used to determine the favourable conditions for maximising the positive and sustainable influence of financial inclusion on the economy, and for reducing disparities in the levels of development exhibited by various countries.