The impact of financial inclusion on sustainable development: Evidence from BICS economies

This paper examines the impact of financial inclusion on sustainable development in the BICS (Brazil, India, China, and South Africa) economies, using balanced panel data from 2004 to 2023. The study employs the System Generalised Method of Moments, Driscoll–Kraay standard errors, and Feasible Generalised Least Squares regression techniques for the empirical analysis. The findings indicate that financial inclusion is a significant driver of sustainable development. Gross fixed capital formation and urbanisation also make positive contributions, underscoring the importance of sustainable infrastructure and well-planned urban growth. By contrast, economic globalisation and ineffective government policies are found to hinder progress towards sustainability. Taken together, these results highlight the need for BICS countries to expand financial access, increase investment in fixed capital, and promote resilient urban development. • We examine the impact of financial inclusion on sustainable development. • We focus on BICS economies from 2004 to 2023. • We utilise three different regression methods. • Financial inclusion is a crucial catalyst for sustainable development. • Economic globalisation and government expenditure negatively affect sustainable development.