Financial inclusion and the financial and economic development: review of the literature, evidence gaps and the road ahead

Abstract

Purpose The purpose of this study is to provide a comprehensive review of the literature on financial inclusion, with a focus on its relationship to financial and economic development. Design/methodology/approach This paper begins by surveying the field of financial inclusion research over the past 15 years, highlighting the evolution of how financial inclusion has been studied in practice. By reviewing 107 studies published between 2008 and 2023 in 63 peer-reviewed journals, the study emphasizes the importance of recent research in this field. Findings The analysis reveals key findings on the positive impact of financial inclusion on economic growth, poverty reduction, financial stability and CO2 emissions, among other factors. Despite the extensive empirical and theoretical work accomplished in the field, the study argues that there is still a need for further research on financial inclusion, including exploring new regions and financial and economic development indicators such as social capital, entrepreneurship and political stability. Practical implications This research aspires to map the emerging discourse on this topic, identify major gaps, and provide a productive line to guide future research. This will contribute to the ongoing debate led by the World Bank on financial inclusion as an effective measure to fight poverty. This study attempts to proffer ideas to encourage collaborative research and deepen our understanding on the role of financial inclusion. Originality/value This study offers a comprehensive overview of recent research on financial inclusion and highlights the need for further research in this field. This study also proposes a promising future research agenda to guide future advancements in the area of financial inclusion.