Financial inclusion, remittances and household consumption in sub-Saharan Africa: Evidence from the application of an endogenous threshold dynamic panel model
This paper examines the effect of financial inclusion on per capita household consumption expenditures in sub-Saharan Africa. It uses data from 28 countries over the period 2004–2022 and an endogenous threshold dynamic panel model for econometric estimations. The study finds evidence of the asymmetr...
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| Format: | Article |
| Language: | English |
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2025-06-01
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| Series: | Economics and Business Review |
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| Online Access: | https://doi.org/10.18559/ebr.2025.2.1969 |
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| author | Ahmat-Tidjani Mahamat Ibrahim |
| author_facet | Ahmat-Tidjani Mahamat Ibrahim |
| author_sort | Ahmat-Tidjani Mahamat Ibrahim |
| collection | DOAJ |
| description | This paper examines the effect of financial inclusion on per capita household consumption expenditures in sub-Saharan Africa. It uses data from 28 countries over the period 2004–2022 and an endogenous threshold dynamic panel model for econometric estimations. The study finds evidence of the asymmetric effects of financial inclusion on household consumption expenditures in the region. There exists a remittances threshold that varies between 2.6% and 6.5% of an average sub-Saharan African country’s GDP below which financial inclusion increases per capita household consumption expenditures. However, above that threshold, financial inclusion does not contribute to improving household welfare in the region. Therefore, given that the effect of financial inclusion increases with liquidity constraints, policies that target a better allocation of remittances received would amplify the effect of financial inclusion on household consumption. |
| format | Article |
| id | doaj-art-a19e4df8522d44e48fa50bb9270dcd61 |
| institution | Matheson Library |
| issn | 2450-0097 |
| language | English |
| publishDate | 2025-06-01 |
| publisher | Sciendo |
| record_format | Article |
| series | Economics and Business Review |
| spelling | doaj-art-a19e4df8522d44e48fa50bb9270dcd612025-07-14T06:30:00ZengSciendoEconomics and Business Review2450-00972025-06-01112679010.18559/ebr.2025.2.1969Financial inclusion, remittances and household consumption in sub-Saharan Africa: Evidence from the application of an endogenous threshold dynamic panel modelAhmat-Tidjani Mahamat Ibrahim0LAEREAG, Faculty of Economics and Management, University of N’Djamena, B.P.: 1117, N’Djamena, ChadThis paper examines the effect of financial inclusion on per capita household consumption expenditures in sub-Saharan Africa. It uses data from 28 countries over the period 2004–2022 and an endogenous threshold dynamic panel model for econometric estimations. The study finds evidence of the asymmetric effects of financial inclusion on household consumption expenditures in the region. There exists a remittances threshold that varies between 2.6% and 6.5% of an average sub-Saharan African country’s GDP below which financial inclusion increases per capita household consumption expenditures. However, above that threshold, financial inclusion does not contribute to improving household welfare in the region. Therefore, given that the effect of financial inclusion increases with liquidity constraints, policies that target a better allocation of remittances received would amplify the effect of financial inclusion on household consumption.https://doi.org/10.18559/ebr.2025.2.1969financial inclusionremittanceshousehold consumption expendituressub-saharan africag2i32o11 |
| spellingShingle | Ahmat-Tidjani Mahamat Ibrahim Financial inclusion, remittances and household consumption in sub-Saharan Africa: Evidence from the application of an endogenous threshold dynamic panel model Economics and Business Review financial inclusion remittances household consumption expenditures sub-saharan africa g2 i32 o11 |
| title | Financial inclusion, remittances and household consumption in sub-Saharan Africa: Evidence from the application of an endogenous threshold dynamic panel model |
| title_full | Financial inclusion, remittances and household consumption in sub-Saharan Africa: Evidence from the application of an endogenous threshold dynamic panel model |
| title_fullStr | Financial inclusion, remittances and household consumption in sub-Saharan Africa: Evidence from the application of an endogenous threshold dynamic panel model |
| title_full_unstemmed | Financial inclusion, remittances and household consumption in sub-Saharan Africa: Evidence from the application of an endogenous threshold dynamic panel model |
| title_short | Financial inclusion, remittances and household consumption in sub-Saharan Africa: Evidence from the application of an endogenous threshold dynamic panel model |
| title_sort | financial inclusion remittances and household consumption in sub saharan africa evidence from the application of an endogenous threshold dynamic panel model |
| topic | financial inclusion remittances household consumption expenditures sub-saharan africa g2 i32 o11 |
| url | https://doi.org/10.18559/ebr.2025.2.1969 |
| work_keys_str_mv | AT ahmattidjanimahamatibrahim financialinclusionremittancesandhouseholdconsumptioninsubsaharanafricaevidencefromtheapplicationofanendogenousthresholddynamicpanelmodel |