Financial inclusion and human development: Evidence from Sub-Saharan Africa

Figures & data

Figure 1. Regional comparison of financial inclusion. Source: Demirgüç-Kunt et al. (2018).

Notes: SSA = Sub-Saharan Africa, EAP = East Asia and Pacific, ECA = Eastern Europe and Central Asia, LAC = Latin America and the Caribbean, SA = South Asia.

Figure 2. Regional HDI comparisons. Source: UNDP (2018).

Table 1. Empirical results, dependent variable: HDI.

	(GMM 1)	(GMM 2)	(GMM 3)	(GMM 4)	(GMM 5)	(GMM 6)
WAT	0.0036***	0.0031***	0.0010	0.0012	−0.005***	0.0017***
	(4.7023)	(5.4578)	(1.2191)	(1.1357)	(−3.7587)	(2.8119)
INT	0.0015**	0.0018**	0.0022***	0.0012	0.0079***	0.0041***
	(2.7349)	(2.5924)	(5.5861)	(1.4940)	(5.9906)	(7.7335)
UNE	−0.0005	−0.0003	0.0022*	−0.0003	0.0106***	0.0004
	(−0.5676)	(−0.3629)	(1.8879)	(−0.1979)	(3.3515)	(0.5038)
HEA	−0.0018	−0.0086**	−0.0131**	−0.0111*	−0.028***	0.0089**
	(−0.3764)	(−2.1690)	(−2.0636)	(−2.0052)	(−3.4861)	(2.0931)
INST	0.0005	0.0004	0.0008**	0.0003	0.0018*	0.0014***
	(1.3904)	(1.1746)	(2.4039)	(0.6779)	(2.0017)	(2.8839)
FDI	0.0009	0.0011*	0.0019**	0.0006	0.0012	0.0041***
	(1.5124)	(1.8652)	(2.3811)	(1.1808)	(0.7490)	(5.7563)
ATMS	0.0011***
	(17.0057)
BORROW		0.0003***
		(3.6392)
BRANCH			0.0101***
			(3.3251)
DEPOSIT				0.0001***
				(9.4410)
LOANS					0.0003***
					(5.1821)
DEPS						0.0001
						(0.2124)
_cons	0.2578***	0.3035***	0.3362***	0.4113***	0.6560***	0.2532***
	(6.5995)	(9.1361)	(7.8386)	(6.9146)	(6.2014)	(7.3140)
A-B AR (2)	[0.11]	[0.53]	[0.14]	[0.15]	[0.24]	[0.12]
Hansen	[0.23]	[0.71]	[0.45]	[0.64]	[0.83]	[0.15]
Diff-in-Hansen	[0.17]	[0.56]	[0.29]	[0.75]	[0.76]	[0.11]

T-values in parenthesis (); p-values in square brackets [ ]. *** p < 0.01, ** p < 0.05, * p < 0.1.

Table 2. Empirical results, dependent variable: LIFE.

	(GMM 1)	(GMM 2)	(GMM 3)	(GMM 4)	(GMM 5)	(GMM 6)
WAT	0.0019***	0.0021**	0.0007	0.0005	0.0005	0.0017*
	(2.8357)	(2.4657)	(1.1493)	(1.2931)	(0.6910)	(1.9072)
INT	0.0024***	0.0029***	0.0018***	0.0012*	0.0064***	0.0026**
	(4.2431)	(5.2761)	(4.7483)	(1.8270)	(6.1618)	(2.4738)
UNE	−0.006***	−0.006***	−0.004***	−0.004***	−0.009***	−0.005***
	(−5.6343)	(−7.0539)	(−4.3556)	(−7.0031)	(−4.7405)	(−4.8463)
HEA	0.0068	−0.0042	−0.0079	−0.0023	0.0073	−0.0031
	(1.0197)	(−1.2172)	(−1.3410)	(−1.0533)	(1.4026)	(−0.5370)
INST	0.0015***	0.0016***	0.0009***	0.0009	0.0037***	0.0010*
	(2.9611)	(2.9771)	(3.1615)	(1.2962)	(5.3901)	(2.0430)
FDI	0.0051***	0.0040***	0.0029***	0.0030***	0.0034**	0.0044***
	(4.9653)	(3.9936)	(4.1578)	(3.9724)	(2.5418)	(4.4482)
ATMS	0.0011***
	(11.9551)
BORROW		0.0003*
		(1.7995)
BRANCHES			0.0080***
			(3.8951)
DEPOSIT				0.0001***
				(8.6164)
LOANS					0.0003***
					(5.1821)
DEPS						0.0001
						(0.9689)
_cons	0.4118***	0.4255***	0.4899***	0.5066***	0.4189***	0.4469***
	(9.6432)	(9.3384)	(15.5703)	(12.0562)	(6.6429)	(8.6103)
A-B AR (2)	[0.12]	[0.31]	[0.11]	[0.11]	[0.82]	[0.15]
Hansen	[0.20]	[0.63]	[0.19]	[0.10]	[0.64]	[0.15]
Diff-in-Hansen	[0.14]	[0.68]	[0.48]	[0.16]	[0.54]	[0.11]

T-values in parenthesis (); p-values in square brackets [ ]. *** p < 0.01, ** p < 0.05, * p < 0.1.

Table 3. Empirical results, dependent variable: INCOME.

	(GMM 1)	(GMM 2)	(GMM 3)	(GMM 4)	(GMM 5)	(GMM 6)
WAT	0.0030**	0.0041***	0.0019	0.0035**	−0.0053	0.0024***
	(2.6602)	(3.3019)	(1.5708)	(2.7006)	(−1.6071)	(4.0128)
INT	0.0023***	0.0015*	0.0018***	0.0004	0.0074***	0.0024***
	(3.0520)	(1.9779)	(4.2667)	(0.4980)	(4.2628)	(5.1566)
UNE	0.0060**	0.0054**	0.0067***	0.0024	0.0218***	0.0054***
	(2.5437)	(2.7376)	(3.2071)	(1.3500)	(3.4672)	(5.0594)
HEA	−0.0002	−0.0246**	−0.0069	−0.0133	−0.0491**	0.0021
	(−0.0181)	(−2.7344)	(−0.6354)	(−1.3124)	(−2.8970)	(0.3599)
INST	−0.0001	0.0011**	0.0011*	0.0012***	0.0016	0.0024***
	(−0.2177)	(2.2914)	(1.7093)	(3.1365)	(1.6402)	(4.3790)
FDI	−0.0019	−0.0009	−0.0010	−0.0001	−0.0002	0.0021***
	(−1.5054)	(−0.6962)	(−0.7341)	(−0.1230)	(−0.0918)	(2.8862)
ATMS	0.0013***
	(9.7193)
BORROW		0.0004**
		(2.7876)
BRANCHES			0.0055
			(1.6113)
DEPOSIT				0.0001***
				(7.4250)
LOANS					0.001***
					(8.5993)
DEPS						0.0001
						(0.5261)
_cons	0.2571***	0.1989***	0.2402***	0.2041***	0.6233**	0.1646***
	(4.1865)	(3.5646)	(3.9593)	(3.0932)	(2.9443)	(4.4409)
A-B AR (2)	[0.40]	[0.62]	[0.30]	[0.09]	[0.54]	[0.12]
Hansen	[0.25]	[0.26]	[0.62]	[0.73]	[0.89]	[0.15]
Diff-in-Hansen	[0.22]	[0.19]	[0.64]	[0.72]	[0.83]	[0.27]

T-values in parenthesis (); p-values in square brackets [ ]. *** p < 0.01, ** p < 0.05, * p < 0.1.

Table 4. Empirical results, dependent variable: EDU.

	(GMM 1)	(GMM 2)	(GMM 3)	(GMM 4)	(GMM 5)	(GMM 6)
WAT	0.0037***	0.0031***	0.0016	0.0020	−0.0030	0.0003
	(3.7885)	(4.5178)	(1.4027)	(1.6458)	(−1.3324)	(0.3770)
INT	0.0017**	0.0020***	0.0023***	0.0022**	0.006***	0.004***
	(2.7723)	(5.9946)	(3.4924)	(2.5768)	(3.8303)	(5.1534)
UNE	0.0012	0.0001	0.0032**	0.0023	0.0053	0.0032**
	(1.2344)	(0.0728)	(2.6812)	(1.6328)	(1.6977)	(2.7850)
HEA	0.0012	−0.0024	−0.0081	−0.0052	−0.0099	0.0053
	(0.1979)	(−0.6131)	(−1.2071)	(−1.4384)	(−1.6511)	(0.7434)
INST	−0.0000	0.0002	0.0008	0.0012**	0.0021	−0.0001
	(−0.0975)	(0.4423)	(1.5221)	(2.1540)	(1.6256)	(−0.0665)
FDI	−0.0005	−0.0001	0.0009	0.0011	−0.0015	0.0031**
	(−0.5702)	(−0.2222)	(0.9108)	(1.6479)	(−0.7905)	(2.1164)
ATMS	0.0009***
	(9.3901)
BORROW		0.0002***
		(3.1884)
BRANCHES			0.0075**
			(2.3170)
DEPOSIT				0.0001***
				(5.7344)
LOANS					0.001***
					(3.8566)
DEPS						0.0001
						(0.8318)
_cons	0.1999***	0.2459***	0.2344***	0.2565***	0.460***	0.3001***
	(3.9354)	(5.5472)	(4.1622)	(4.7321)	(3.5576)	(5.0967)
A-B AR (2)	[0.09]	[0.25]	[0.30]	[0.20]	[0.16]	[0.11]
Hansen	[0.33]	[0.37]	[0.30]	[0.20]	[0.60]	[0.15]
Diff-in-Hansen	[0.28]	[0.33]	[0.25]	[0.60]	[0.50]	[0.12]

T-values in parenthesis (); p-values in square brackets [ ]. *** p < 0.01, ** p < 0.05, * p < 0.1.

Demirgüç-Kunt, A, Klapper, L, Singer, D, Ansar, S & Hess, J, 2018. The global findex database 2017: Measuring financial inclusion and the fintech revolution. World Bank, Washington, DC.

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UNDP, 2018. Human development indices and indicators. 2018 statistical update. www.undp.org. [Accessed 9 September 2019].

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