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Banking Services and Inclusive Development in Sub-Saharan Africa

  • 2022
  • OriginalPaper
  • Chapter
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Abstract

The chapter explores the dominance of banks in Africa's financial system and their potential to drive inclusive development. It delves into the theoretical frameworks of Schumpeter and McKinnon and Shaw, which posit that a well-functioning financial system can boost growth and economic development. The study then focuses on the empirical strategy used to examine the impact of banking services and corruption control on inclusive development, measured by the Human Development Index (HDI) and Inequality-adjusted HDI (IHDI). The findings reveal that banking services significantly promote inclusive development, while effective control of corruption further enhances this impact. The chapter also highlights the substitutory nature of banking services and corruption control in achieving inclusive development, suggesting that coordinated efforts are needed to maximize their combined benefits. The study concludes by emphasizing the importance of accessible, affordable, and efficient banking services, as well as robust anti-corruption measures, in achieving the Sustainable Development Goals in Sub-Saharan Africa.
Mohammed Amidu would like to thank the DFID-ESRC for funding this research which is part of DFID-ESRC Research Project Ref ES/NO13344/1: “Delivering Inclusive Financial Development & Growth”.

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Title
Banking Services and Inclusive Development in Sub-Saharan Africa
Authors
Haruna Issahaku
Mohammed Amidu
Aisha Mohammed Sissy
Copyright Year
2022
DOI
https://doi.org/10.1007/978-3-030-75556-0_12
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