TITLE:
Determinants of Inclusive Growth in Selected West African Countries
AUTHORS:
Kauthar Aminu Diyo, Taiwo Adewale Muritala, Frank Alaba Ogedengbe
KEYWORDS:
Inclusive Growth, Financial Inclusion, Institutional Quality, Control of Corruption, Political Stability, Number of ATM Users
JOURNAL NAME:
Open Journal of Business and Management,
Vol.13 No.6,
September
28,
2025
ABSTRACT: In West Africa, the determinants of inclusive growth remain underexplored, with most countries exhibiting varying degrees of institutional challenges and financial access. With this in mind, the purpose of this research is to examine the impact of financial inclusion and institutional quality as determinants of inclusive growth. Specifically, the study examined the relationship between the components of financial inclusion (number of ATM users and number of depositors) and institutional quality (control of corruption and political stability) on inclusive growth proxy by gross domestic product per capita. The study focused on ten (10) West African selected countries over the period of 2013 to 2023. The study used the ex-post facto research design, while the population of the study comprised the 18 countries in West Africa, out of which 10 countries were conveniently sampled for the study as a result of the availability of data which was utilised using Purposive Sampling Technique. The study used secondary quantitative data in panel data structure (time series and cross sections) and used both descriptive and static regression (pooled, fixed effect and random effect) techniques in analysing the data. The findings from the causality relationship at aggregate level, reveal a bi-directional causality and a symbiotic relationship exists among number of ATM users (F-stat = 3.39069; Prob. 0.0009), number of depositors (F-stat = 1.46482; Prob. 0.0006), control of corruption (F-stat = 2.68201; Prob. 0.0060), and Political stability (F-stat = 3.38995; Prob. 0.0008) and inclusive growth. However, the results at the disaggregated level, on the one hand, reveal that the two components of financial inclusion (number of commercial bank branches (F-stat = 0.81216; Prob. 0.0003), number of depositors (F-stat = 1.46482; Prob. 0.0009)) reveal a symbiotic relationship, while on the other hand, the results at the disaggregated level regarding the two components of institutional quality (control of corruption (F-stat = 0.89072; Prob. 0.0003) and the political stability (F-stat = 3.338998; Prob. 0.0006)) showed also a symbiotic relationship. Finally, judging from the results of the static panel regression, the findings reveal that the number of ATM users (β = 0.492; P value = 0.0001), number of depositors (β = 0.249; P value = 0.0000), control of corruption (β = 0.722; P value = 0.0003 and political stability (β = 0.842; P value = 0.0000) were all positively and significantly related to inclusive growth of the selected West African countries. Hence, the study concludes that financial inclusion (measured by the number of ATM users, and number of depositors) and institutional quality (measured by control of corruption and political stability) have a significant and positive symbiotic relationship with inclusive growth in the selected West African countries. Deposit money banks can boost financial inclusion by increasing branch networks and deploying more ATMs in underserved areas, especially rural areas. Government should ensure a stable political platform in order to provide the necessary foundation for sound economic policies, effective governance and social cohesion, of all which are crucial for achieving inclusive growth.