Financial Inclusion, Globalization and Structural Transformation in Developing Countries: A Finite Mixture-of-Regressions Approach

• 발행기관: 세종대학교 경제통합연구소
• 저자명: Relwendé Sawadogo Pegdéwendé Nestor Sawadogo Romuald Somlanaré Kinda
• 간행물 정보: 『Journal of Economic Integration』제39권 제2호, 420~453쪽, 전체 34쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2024.06.01

국문 초록

Industrialization plays a key role in job creation and economic development. We extend the abundant literature on the determinants of industrialization by exploring the potential effects of financial inclusion in 64 developing countries over the period 2000-2020. Using a finite mixture regression model, we find that our sample is best described by a model with three classes of countries. We then incorporate the potential presence of hidden heterogeneity and, we explain the class membership of countries based on globalization. We find that the impact of financial inclusion on industrialization differs across these three classes of countries. Specifically, financial inclusion is negatively associated with industrialization in the first class of countries where the level of industrialization is low, while it positively affects industrialization in relatively more industrialized countries (class 2 and class 3). We also show that better-integrated countries into the global economy are more likely to be in the class where financial inclusion promotes industrialization. Our results are robust to several robustness checks. Our findings suggest that developing countries could reap more benefits from financial inclusion by strengthening their integration into the global economy.

목차

I. Introduction

II. Literature Review

III. Data and Descriptive Statistics

IV. Econometric Specifications

V. Empirical Results

VI. Conclusion and Policy Implications

References

키워드

financial inclusion globalization industrialization finite mixture regression developing countries