TY - JOUR
T1 - Monetary Policy and Financial Inclusion in Sub-Sahara Africa
T2 - A Panel VAR Approach
AU - Anarfo, Ebenezer Bugri
AU - Abor, Joshua Yindenaba
AU - Osei, Kofi Achampong
AU - Gyeke-Dako, Agyapomaa
N1 - Publisher Copyright:
© 2019, © 2019 Informa UK Limited, trading as Taylor & Francis Group.
PY - 2019
Y1 - 2019
N2 - This article investigates the dynamic and bi-causal link between monetary policy and financial inclusion in sub-Saharan Africa using a panel VAR framework. The researcher obtained data from World Development Indicators (WDI) spanning from 1990 to 2014 for 48 sub-Saharan African economies. The findings suggest that a bi-causal relationship exists between monetary policy and financial inclusion. Specifically, it is evident that monetary policy affects financial inclusion, and financial inclusion is also influenced by monetary policy. The policy implication of this study is that the effectiveness of monetary policy depends on financial inclusion. Hence, the efforts of governments in sub-Saharan African countries should aim at policies that enhance financial inclusion for effective implementation of monetary policy. Also, promoting financial inclusion will require governments in sub-Saharan Africa to reduce their monetary policy rates.
AB - This article investigates the dynamic and bi-causal link between monetary policy and financial inclusion in sub-Saharan Africa using a panel VAR framework. The researcher obtained data from World Development Indicators (WDI) spanning from 1990 to 2014 for 48 sub-Saharan African economies. The findings suggest that a bi-causal relationship exists between monetary policy and financial inclusion. Specifically, it is evident that monetary policy affects financial inclusion, and financial inclusion is also influenced by monetary policy. The policy implication of this study is that the effectiveness of monetary policy depends on financial inclusion. Hence, the efforts of governments in sub-Saharan African countries should aim at policies that enhance financial inclusion for effective implementation of monetary policy. Also, promoting financial inclusion will require governments in sub-Saharan Africa to reduce their monetary policy rates.
KW - GDP growth rate
KW - Monetary policy
KW - effective exchange rate
KW - financial inclusion
KW - inflation rate
KW - real
UR - http://www.scopus.com/inward/record.url?scp=85063263143&partnerID=8YFLogxK
U2 - 10.1080/15228916.2019.1580998
DO - 10.1080/15228916.2019.1580998
M3 - Article
AN - SCOPUS:85063263143
SN - 1522-8916
VL - 20
SP - 549
EP - 572
JO - Journal of African Business
JF - Journal of African Business
IS - 4
ER -