Financial Inclusion and Cluster-Based Industrialization

  • Saganga Mussa Kapaya
Keywords: financial inclusion, clustering, industrialization, industrial growth


There are two related lines of arguments which forms twin objectives for this study. The first is to assess how financial inclusion may spur industrilization in Africa,  and the second is to assess how industrialization may prosper where there is clustering of SMEs/industrial activities in Africa. The study employs a quantitative approach where regression analysis is used employing secondary data from the World Bank Development Indicators for Seven African economies. The study found that clustering promotes industrial growth. It has also found lack of evidence for the role of financial inclusion in promoting industrial growth. It also did not find statistical evidence for joint effects of these factors on industrialization. It calls for policy dressing and specific researches in the areas of clustering properties and financial inclusion and their effects on industrial growth.

Author Biography

Saganga Mussa Kapaya

The Open University of Tanzania


Journal Identifiers

eISSN: 0856-6739