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Research Article

EEO. 2021; 20(2): 1469-1475


IMPACT OF FINANCIAL INCLUSION ON ECONOMIC DEVELOPMENT OF PAKISTAN (AN APPLICATION OF SEM)

Afnan Khan, Dr. Shumaila Hashim, Dr. Sher Zaman Khan, Shahneela Khan.

Abstract
Financial inclusion associates the people with the financial system of the country; so that they can use financial services and products to fulfill their basic needs. This research study mainly deals with the impact of financial inclusion on economic development of Pakistan. First find out the determinants of financial inclusion and then its impact on economic development through structural equation model. Data normality was tested through P-P plots. Multicollinearity was also checked. Econometric results indicated that access and availability are the strong determinants of financial inclusion and further it has positive and significant impact on economic development of Pakistan.

Key words: Financial inclusion, Economic development, Pakistan



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