Exploring the complementary interaction between financial inclusion and gender equality on economic growth: fresh evidence from developing countries

Figures & data

Table 1. Direction and meaning of the coefficients of variables of interest.

Sign	Meaning
${\beta }_1>0$	Financial Inclusion is pro-growth
${\beta }_2>0$	Gender equality is growth-promoting
${\beta }_3>0$	Financial inclusion and Gender equality are complements
${\beta }_3<0$	Financial inclusion and Gender equality are substitutes
${\beta }_3=0$	Neither complements nor substitutes

Table 2. Definition and source of variables.

Variable	Notation	Source
ATMs per 100000 of adults	ATM	WDI (2020)
Bank branches per 100000 of adults	BBR	WDI (2020)
Bank credit to bank deposits (% GDP)	CDR	WDI (2020)
Bank deposits to GDP (%)	BDPO	WDI (2020)
GDP per capita (Constant 2015 US$)	GDP	WDI (2020)
Gender Inequality Index	GII	UNDP data (2020)
Gross fixed capital formation (% GDP)	GFC	WDI (2020)
Government final consumption expenditure	GOVT	WDI (2020)
Inflation, consumer prices (annual %)	INF	WDI (2020)
Trade (% of GDP)	TRADE	WDI (2020)

Notes: WDI: World Development Indicators. UNDP: United Nations Development Programme.

Table 3. Descriptive statistics.

Variable	Obs	Mean	Std. Dev	Min	Max
ATMs per 100000 of adults	768	28.813	28.981	0	126.707
Bank branches per 100000 of adults	768	12.945	12.684	.421	92.338
Bank credit to bank deposits (% GDP)	768	102.176	86.479	17.519	867.942
Bank deposits to GDP (%)	768	42.305	25.234	3.827	129.25
GDP per capita (Constant 2015 US$)	768	3908.745	3092.297	370.341	15069.07
Gender Inequality Index	768	.462	.123	.167	.722
Government final consumption expenditure	768	13.295	3.905	5.039	26.471
Gross fixed capital formation (% GDP)	768	24.273	7.666	10.522	69.673
Inflation, consumer prices (annual %)	767	6.013	5.398	−18.109	51.461
Trade (% of GDP)	768	72.109	34.297	22.106	211.5

Table 4. Matrix of correlations.

Variables	ATM	BBR	CDR	BDPO	GDP	GII	GOVT	GFC	INF	TRADE
ATM	1.000
BBR	0.382	1.000
CDR	0.115	−0.062	1.000
BDPO	0.362	0.277	−0.159	1.000
GDP	0.711	0.301	0.111	0.295	1.000
GII	−0.598	−0.412	−0.386	−0.264	−0.597	1.000
GOVT	0.310	0.237	−0.140	0.285	0.121	−0.21	1.000
GFC	−0.051	0.051	0.133	0.135	0.037	−0.17	0.065	1.00
INF	−0.052	−0.029	−0.004	−0.088	−0.083	0.039	−0.164	−0.05	1.000
TRADE	0.123	0.217	0.355	0.369	0.152	−0.43	0.213	0.15	−0.030	1

Table 5. LLC Unit root tests (akaike information criteria).

Variable	With individual intercept		With individual intercept and trend
	Level	First difference	level	First difference
GDP	5.94 (2)	−8.844 (2)***	3.341 (3)	−10.145 (3)***
ATM	−6.60 (2)***		−1.61 (2)**
BBR	−7.21 (2)***		−1.30 (2)*
BDPO	−2.46 (2)***		−6.71 (2)***
CDR	−4.198 (2)***		−6.830 (3)***
GEI	−6.326 (2)***		−0.65 (2)	−1.92 (2)***
INF	−10.276 (2)***		−11.794 (3)***
TRADE	−5.611 (2)***		−6.709 (3)***
GFC	−2.421 (2)***		–2.848 (3)***
GOVT	−2.427 (2)***		−5.938 (3)***

Source: Author’s calculations based on data from World Bank and UNDP.

Note: The figures depicted above represent the t-statistics from Levin, Lin and Chu test results and the figures in braces represent the maximum lag-length for each cross-sectional unit based on the Akaike Information Criteria.

* Significance at 10%.

** Significance at 5%.

*** Significance at 1%.

Table 6. System GMM results.

GDP	Financial access	Financial availability	Financial usage
	Model 1	Model 2	Model 3	Model 4
${\mathit{\text{GDP}}}_{i,t-1}$	.523***	.995***	.729***	.468*
	(.085)	(.224)	(.154)	(.276)
${\mathit{\text{ATM}}}_{i,t-1}$	−.003**
	(.001)
${\mathit{\text{BBR}}}_{i,t-1}$		.006*
		(.004)
${\mathit{\text{BDPO}}}_{i,t-1}$			.004***
			(.0013)
${\mathit{\text{CDR}}}_{i,t-1}$				.255**
				(.12)
${\mathit{\text{GEI}}}_{i,t}$	.95*	2.15**	2.67***	.49**
	(.523)	(1.01)	(.803)	(.259)
ATM*GEI	.005***
	(.002)
BBR*GEI		.012**
		(.006)
BDPO*GEI			.008***
			(.003)
CDR*GEI				.002**
				(.0008)
TRADE	.0007***	.001**	.001***	.0025***
	(.0002)	(.0004)	(.0003)	(.0008)
INF	−0009***	−.001**	−.002***	−.004**
	(.0003)	(.0005)	(.0004)	(.002)
GFC	.05***	.03*	.045***	.015
	(.008)	(.016)	(.012)	(.027)
GOVT	−.015***	−.022***	−.013***	.008
	(.004)	(.006)	(.005)	(.0083)
AR(1)	.004	.008	.001	.347
AR(2)	.153	.622	.764	.258
Sargan test	.344	.407	.028	.613
Instruments	39	30	30	23
Groups	48	48	48	48

***p < .01, **p < .05, *p < .1.

Natural log of GDP, Gross Capital Formation and CDR has been taken throughout the regressions.