Impact of Financial Inclusion, Financial Development and Misery Index on Economic Growth: An Analysis from Selected Asian Countries

Abstract

Despite the increasing focus on global economic development, there remains a gap in understanding the specific impact of financial inclusion, financial development, and the misery index on economic growth within the Asian context. Identifying and analyzing these relationships is crucial for informing effective policy interventions. The lack of a comprehensive understanding of how these variables interact hinders the formulation of targeted strategies to promote sustainable and inclusive economic growth in the region. In the current study, we have investigated the impact of financial development, financial inclusion, urban population and misery index on economic growth in selected Asian economies using panel data from 2004 to 2018. GDP per capita is used as the dependent variable, and financial development, financial inclusion, urban population and misery index are used as explanatory variables. By using a random effect technique, it was found that financial development, financial inclusion, and urban population have boosted financial inclusion. However, the misery index has decreased economic growth in selected Asian economies. It is suggested that these economies must increase financial development and financial services access and availability for more growth. The government must focus on education to increase production and investment in concerned economies. Moreover, the government must control inflation along with unemployment to foster economic growth.