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

Published: Feb 29, 2020


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

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
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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