IS FINANCIAL INCLUSION A DETERMINANT OF LIFE EXPECTANCY? EVIDENCE FROM WEST AFRICAN REGION
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Published
Jul 15, 2021
Abstract
This study is a contribution to the debate on the significance of financial inclusion with much emphasis on its impacts on human life span. The sample used for the analyses consisted of 14 West African countries over the period 2010 and 2018. The study employed a dynamic 2-Step System GMM approach, and under different model specifications, control for public and private health expenditure, food production quality, population, access to electricity, and the number of people practicing open defecation. The estimated results, among others, showed considerable evidence of positive feedback of financial inclusion on human life span. As such, substantial improvement in the access to and use of financial services is key to a high life expectancy in the region.
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Keywords
Financial inclusionlife expectancySystem GMM
References
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Bakar, H.O. & Sulong Z, (2018). The Role of Financial Inclusion on Economic Growth: Theoretical and Empirical Literature Review Analysis. J Bus Fin Aff. 7: 356. DOI: 10.4172/2167-0234.1000356
Beck, T., Demirgüc-Kunt, A., & Levine, R. (2007). Finance, Inequality and the Poor. Journal of Economic Growth, 12(1), 27–49.
Burgess, R. & Pande, R. (2005). Do Rural Banks Matter? Evidence from the Indian Social Banking Experiment. American Economic Review, 95(3): 780–795.
CBN (2017). National Financial Inclusion Strategy Implementation. Annual Report. July
Chamboko, R. & Makuvaza, L. (2018). A Needs-based Approach to Financial Inclusion Measurement in Zimbabwe. https://cenfri.org/publications/a-needs-based-approach-to-financial-inclusion-measurement-in-zimbabwe/. Accessed on August 19, 2019
Cull, R., Ehrbeck, T. & Holle, N. (2014). Financial Inclusion and Development: Recent Impact Evidence. CGAP (Consultative Group to Assist the Poor) Focus Note 9/2014.
Duvendack, M. & Mader, P. (2019). Impact of Financial Inclusion in Low- and Middle-income Countries: A Systematic Review of Reviews. 3ie Systematic Review 42.
Garcia-Herrero, A, & Turégano, D.M. (2015), Financial Inclusion rather than Size, is the Key to Reducing Income Inequality, BBVA Working Paper No. 15/05, February.
Global Findex Statistic Reports (2017). https://globalfindex.worldbank.org
Grossman, M. (2005). Education and Nonmarket Outcomes. NBER Working Paper Series. Working Paper 11582. http://www.nber.org/papers/w11582
Grossman, M., (1972). On the Concept of Health Capital and the Demand for Health. The Journal of Political Economy. 80(2): 223-255.
Gyasi, R.M. Adam, A.M. & Philips, D.R (2019). Financial Inclusion, Health-Seeking Behavior, and Health Outcomes among Older Adults in Ghana. Research on Aging, 41(8):794 -820.
Jabaa, E, Balana, C.B. & Robu I. (2014). The Relationship between Life Expectancy at Birth and Health Expenditures estimated by a Cross-country and Time-series Analysis, Procedia Economics and Finance. 15: 108 –114.
Kirkwood, T.B. (2002). Evolution of Aging. Mech. Aging Dev. 23(7): 737-745. Retrieved from https://www.ncbi.nlm.nih.gov/pubmed/11869731
Kpolovie, P.J, Oshodi, P.O. & Iwuchukwu, H. (2016). Continental Inequities in Life Expectancy. European Journal of Biology and Medical Science Research. 4(6):30-47.
Lederle, N. (2009). Exploring the Impacts of Improved Financial Inclusion on the Lives of Disadvantaged People. Unpublished PhD Thesis. Heriot-Watt University
Leivea, A. & Xub, K. (2008). Coping with Out-of-Pocket Health Payments: Empirical evidence from 15 African Countries. Bulletin of the World Health Organization. 86(11): 849-856.
Lorentzen, P. McMillan, J. & Wacziarg, R. (2008). Death and Development, Journal of Economic Growth, 13(2): 81-124.
Love, I. & Peria, M.M.S. (2012). How Bank Competition affects Firms’ access to Finance. World Bank Policy Research Working Paper, No. 6163.
Mahyar, H. (2016). Economic Growth and Life Expectancy: The Case of Iran. Studies in Business and Economics, 11(1): 80-87.
Novignon, J., Olakojo, S.A. & Nonvignon, J. (2012). The Effects of Public and Private Health Care Expenditure on Health Status in Sub-Saharan Africa: New evidence from Panel Data Analysis. Health Economic Review. 2(1):1-8.
Ogunsakin, S. & Olonisakin, T.Y. (2017). Health Expenditure Distribution and Life Expectancy in Nigeria, International Journal of Scientific and Research Publications, 7(7): 336-340
Park, C & Mercado, R.V. (2015). Financial Inclusion, Poverty, and Income Inequality in Developing Asian. ADB Economies Working Paper Series. WPS426
Pearce, D. (2011). Financial Inclusion in the Middle East and North Africa Analysis and Roadmap Recommendations. Policy Research Working Paper. WPS5610.
Popoola, O.T. (2019). Financial Inclusion and Health Shocks: A Panel Data Analysis of 36 African Countries. Asian Journal of Economics and Empirical Research. 6(1): 45-51,
Sahay, R, Čihák, M., N’Diaye, P. Barajas, A., Mitra, S., Kyobe, A., Mooi, Y, N. & Yousefi, S.R. (2015). Financial Inclusion: Can It Meet Multiple Macroeconomic Goals? IMF Staff Discussion Note. SDN/15/17
Seshamani, V. & Tounkara, M. (2018), Financial Inclusion and Income Inequality: A Case Study of Selected Countries in Sub-Saharan Africa. Archives of Business Research, 6(4): 44 -51.
United Nation (2012), Population Fact, United Nation publication.
https://www.un.org/en/development/desa/population/publications/factsheets/index.asp. Accessed on August 28, 2019
World Bank (2018). World Development Indicator. Available at https://data.worldbank.org/.
Bakar, H.O. & Sulong Z, (2018). The Role of Financial Inclusion on Economic Growth: Theoretical and Empirical Literature Review Analysis. J Bus Fin Aff. 7: 356. DOI: 10.4172/2167-0234.1000356
Beck, T., Demirgüc-Kunt, A., & Levine, R. (2007). Finance, Inequality and the Poor. Journal of Economic Growth, 12(1), 27–49.
Burgess, R. & Pande, R. (2005). Do Rural Banks Matter? Evidence from the Indian Social Banking Experiment. American Economic Review, 95(3): 780–795.
CBN (2017). National Financial Inclusion Strategy Implementation. Annual Report. July
Chamboko, R. & Makuvaza, L. (2018). A Needs-based Approach to Financial Inclusion Measurement in Zimbabwe. https://cenfri.org/publications/a-needs-based-approach-to-financial-inclusion-measurement-in-zimbabwe/. Accessed on August 19, 2019
Cull, R., Ehrbeck, T. & Holle, N. (2014). Financial Inclusion and Development: Recent Impact Evidence. CGAP (Consultative Group to Assist the Poor) Focus Note 9/2014.
Duvendack, M. & Mader, P. (2019). Impact of Financial Inclusion in Low- and Middle-income Countries: A Systematic Review of Reviews. 3ie Systematic Review 42.
Garcia-Herrero, A, & Turégano, D.M. (2015), Financial Inclusion rather than Size, is the Key to Reducing Income Inequality, BBVA Working Paper No. 15/05, February.
Global Findex Statistic Reports (2017). https://globalfindex.worldbank.org
Grossman, M. (2005). Education and Nonmarket Outcomes. NBER Working Paper Series. Working Paper 11582. http://www.nber.org/papers/w11582
Grossman, M., (1972). On the Concept of Health Capital and the Demand for Health. The Journal of Political Economy. 80(2): 223-255.
Gyasi, R.M. Adam, A.M. & Philips, D.R (2019). Financial Inclusion, Health-Seeking Behavior, and Health Outcomes among Older Adults in Ghana. Research on Aging, 41(8):794 -820.
Jabaa, E, Balana, C.B. & Robu I. (2014). The Relationship between Life Expectancy at Birth and Health Expenditures estimated by a Cross-country and Time-series Analysis, Procedia Economics and Finance. 15: 108 –114.
Kirkwood, T.B. (2002). Evolution of Aging. Mech. Aging Dev. 23(7): 737-745. Retrieved from https://www.ncbi.nlm.nih.gov/pubmed/11869731
Kpolovie, P.J, Oshodi, P.O. & Iwuchukwu, H. (2016). Continental Inequities in Life Expectancy. European Journal of Biology and Medical Science Research. 4(6):30-47.
Lederle, N. (2009). Exploring the Impacts of Improved Financial Inclusion on the Lives of Disadvantaged People. Unpublished PhD Thesis. Heriot-Watt University
Leivea, A. & Xub, K. (2008). Coping with Out-of-Pocket Health Payments: Empirical evidence from 15 African Countries. Bulletin of the World Health Organization. 86(11): 849-856.
Lorentzen, P. McMillan, J. & Wacziarg, R. (2008). Death and Development, Journal of Economic Growth, 13(2): 81-124.
Love, I. & Peria, M.M.S. (2012). How Bank Competition affects Firms’ access to Finance. World Bank Policy Research Working Paper, No. 6163.
Mahyar, H. (2016). Economic Growth and Life Expectancy: The Case of Iran. Studies in Business and Economics, 11(1): 80-87.
Novignon, J., Olakojo, S.A. & Nonvignon, J. (2012). The Effects of Public and Private Health Care Expenditure on Health Status in Sub-Saharan Africa: New evidence from Panel Data Analysis. Health Economic Review. 2(1):1-8.
Ogunsakin, S. & Olonisakin, T.Y. (2017). Health Expenditure Distribution and Life Expectancy in Nigeria, International Journal of Scientific and Research Publications, 7(7): 336-340
Park, C & Mercado, R.V. (2015). Financial Inclusion, Poverty, and Income Inequality in Developing Asian. ADB Economies Working Paper Series. WPS426
Pearce, D. (2011). Financial Inclusion in the Middle East and North Africa Analysis and Roadmap Recommendations. Policy Research Working Paper. WPS5610.
Popoola, O.T. (2019). Financial Inclusion and Health Shocks: A Panel Data Analysis of 36 African Countries. Asian Journal of Economics and Empirical Research. 6(1): 45-51,
Sahay, R, Čihák, M., N’Diaye, P. Barajas, A., Mitra, S., Kyobe, A., Mooi, Y, N. & Yousefi, S.R. (2015). Financial Inclusion: Can It Meet Multiple Macroeconomic Goals? IMF Staff Discussion Note. SDN/15/17
Seshamani, V. & Tounkara, M. (2018), Financial Inclusion and Income Inequality: A Case Study of Selected Countries in Sub-Saharan Africa. Archives of Business Research, 6(4): 44 -51.
United Nation (2012), Population Fact, United Nation publication.
https://www.un.org/en/development/desa/population/publications/factsheets/index.asp. Accessed on August 28, 2019
World Bank (2018). World Development Indicator. Available at https://data.worldbank.org/.
How to Cite
Adediyan, Aderopo Raphael. 2021. “IS FINANCIAL INCLUSION A DETERMINANT OF LIFE EXPECTANCY? EVIDENCE FROM WEST AFRICAN REGION”. Studies in Business and Economics 23 (1):22-37. https://doi.org/10.29117/sbe.2020.0119.
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Articles