Fostering sustainable growth through inclusive financial practices
Author(s): Mojisola Oladunni Jacob-Udeme and Samson Olusola Olojede
Abstract: Financial inclusion is a crucial aspect of economic development, particularly in the context of poverty reduction and overall financial stability. This review paper explores the relationship between financial inclusion and sustainable growth through inclusive financial practices. It discusses the importance of financial literacy in enhancing financial inclusion and the potential for financial inclusion to drive innovation and economic growth. The role of institutions in promoting financial inclusion has been highlighted, emphasising the importance of institutional support in achieving greater financial deepening and economic growth. The paper also discusses the concerns regarding the long-term benefits and potential risks associated with digital financial inclusion and the relationship between financial inclusion and financial stability. Sustainable financial practices are crucial for achieving economic stability, reducing poverty, and promoting social equality. The paper highlights how financial inclusion provides equal access to financial services and is essential for sustainable growth and productivity, particularly for small and medium-scale enterprises. Furthermore, the paper explores the nexus between financial inclusion and suitability and how financial inclusion requires broadening and deepening the reach of banking. It also discusses the threshold effect of the financial inclusiveness-growth nexus, indicating a non-monotonic positive relation with economic growth. The paper concludes by highlighting the need to promote financial literacy to encourage sustainable financial practices and ensure the financial sustainability of agricultural enterprises, promoting social and environmental responsibility in financial activities.
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