Financial Inclusion And Poverty: Does The Country's Education Matter? Evidence From Lower-Middle-Income Countries

Abstract

Financial Inclusion is a critical element of social inclusion, mainly helpful in combating poverty. The study aims to examine the impact of financial inclusion on poverty with the moderating role of education attainment. The sample comprises lower middle-income countries using the unbalanced panel data for the span of 2005–2021. Through rigorous analysis[1] by employing static and dynamic panel models, the study finds that financial Inclusion (CFII) significantly and negatively influences poverty in lower-middle-income countries. The findings also indicate that the education attainment level of a country has significantly and positively impacted the relationship between financial inclusion and poverty. This study provides valuable insights for policymakers, Federal Banks and Governments. First, financial institutions should broaden their formal financial services to the vulnerable individuals of society to combat poverty. Second, the government must focus on the educational attainment level to increase the effectiveness of financial inclusion in eradicating poverty.