Exploring the direct relationship between GDP per-capita and financial inclusion

Published: Feb 29, 2020

Abstract:

Purpose: This paper predicted the direct relationship between the four indicators of “Financial Inclusion” and “GDP per-capita” of the country. Previous studies presented in this scenario are qualitative in nature.

Research methodology: In this paper, “step-wise multiple linear regression” is used to establish the cause-and-effect relationship between the four indicators of “financial inclusion”; “Deposit accounts per 1000 population”; “Number of credit accounts per 1,000 people”; “Bank branches per 100,000 of adult population”, and “ATMs per 100,000 of adult population” and “GDP per capita”.

Results: Regression model showed only “Credit accounts per 1,000 people” have a significant relationship with the “GDP per capita”. In this article, secondary data were obtained from the RBI website and the reports of international financial institutes.

Limitations: Data on “ATMs” and “Bank branches per 100,000 of the adult population” is not present before 2004, decreasing the depth of analysis.

Contribution: There is a cause-and-effect relationship between the country’s “GDP per capita” and the “F.I.” “Credit accounts per 1,000 people” only have a significant relationship with GDP per capita, so the change in the number of credit account will show a change in GDP per capita for Indian economy.

Keywords: Financial inclusion (F.I), GDP (Gross Domestic Product) per capita, Deposit accounts, Credit accounts, ATMs (Automated Teller Machines), Bank branches

Keywords:
1. Financial inclusion (F.I)
2. GDP (Gross Domestic Product) per capita
3. Deposit accounts
4. Credit accounts
5. ATMs (Automated Teller Machines)
6. Bank branches
Authors:
1 . Saurabh Sonkar
2 . Ashoke Kr Sarkar
How to Cite
Sonkar, S. ., & Sarkar, A. K. . (2020). Exploring the direct relationship between GDP per-capita and financial inclusion. Annals of Management and Organization Research, 1(3), 187–202. https://doi.org/10.35912/amor.v1i3.415

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