Dynamic Interaction Between Financial Inclusion and Gender Equality in Determining Economic Growth: A Study of Developing Countries

Gender equality and financial inclusion are the key constituents of the principle of “leaving no one behind” upheld by the Sustainable Development Goals which emphasize a holistic approach for the sustainable development of all. The paper is an attempt to analyze the combined effect of financial inclusion and gender equality on economic growth for a group of 48 developing countries for the period 2004–2019 using the generalized method of moments. Using interaction analysis, the study finds a complementary association between gender equality and financial inclusion in their impact on economic growth. This suggests that an improvement in the financial inclusion in the presence of better gender parity has a multiplicative effect on economic growth. The study concludes that gender equality creates various pull and push factors for better financial inclusion. Similarly, financial inclusion eliminates the gender inequality in access to financial products exacerbating the influence on economic growth both individually as well as collectively.