Financial inclusion, Islamic banking, Juhn-Murphy-piercet, OIC, Sub-Saharan Africa, Tobit
This study examined the eﬀect of introduction of Islamic banking and ﬁnance on ﬁnancial inclusion in Sub-Sahara Africa (SSA). To achieve this objective, the study applied Probit, Tobit and Juhn-Murphy-Pierce decomposition to estimate model of ﬁnancial inclusion. The study used World Bank’s Global Financial inclusion index (Global Findex) dataset of 2015. The ﬁndings revealed that the introduction of Islamic banking and ﬁnance system in some Organization of Islamic Cooperation (OIC) countries in SSA enhanced ﬁnancial inclusion in the sub-region. The study also uncovers that households from OIC with Islamic banking and ﬁnance are more likely to be ﬁnancially included than their counterparts in OIC countries without Islamic banking and ﬁnance. Further, there are other factors that play an important role in determining the probability of ﬁnancial inclusion in the region. Inter alia, these factors include age, gender, income level and level of education. The policy implication of the ﬁndings is that introducing Islamic banking and ﬁnance is necessary for spurring ﬁnancial inclusion in OIC of SSA.
CBN Journal of Applied Statistics
Abdu, Musa; Jibir, Adamu; Abdullahi, Salihu; and Rabi'u, Aliyu A.
"Can Islamic Banking and Finance Spur Financial Inclusion? evidence from Sub-Saharan Africa,"
CBN Journal of Applied Statistics (JAS): Vol. 9
, Article 4.
Available at: https://dc.cbn.gov.ng/jas/vol9/iss1/4