Does financial development mean financial inclusion? A causal analysis for Eswatini
The purpose of this paper is to undertake a causal analysis for Eswatini, which examines whether financial development causes increased financial inclusion. Through Engle & Granger (1987) cointegration analysis, the existence of a long run relationship between the dependent variable, financial inclusion, and the independent variables: financial development and economic growth is investigated. The results indicate unidirectional Granger causality from financial development to financial inclusion and that the variables have a longrun relationship. The results imply that financial development causes financial inclusion in Eswatini. Policy recommendations from these results advise that financial inclusion strategies include policy decisions that are geared to increased financial development.
Keywords: Financial Development; Financial Inclusion; Eswatini.
To assure the integrity, dissemination, and protection against copyright infringement of published articles, you will be asked to assign us, via a Publishing Agreement, the copyright in your article. Your Article is defined as the final, definitive, and citable Version of Record, and includes: (a) the accepted manuscript in its final form, including the abstract, text, bibliography, and all accompanying tables, illustrations, data; and (b) any supplemental material. Our Publishing Agreement with you will constitute the entire agreement and the sole understanding between you and us; no amendment, addendum, or other communication will be taken into account when interpreting your and our rights and obligations under this Agreement.