In collaboration with Payame Noor University and Iranian Association for Energy Economics (IRAEE)

Document Type : Quarterly Journal


1 Urmia University

2 PhD student in economics, Urmia University

3 PhD student in Economics, Urmia University


One of the most important lessons of the global financial crisis in 2008 was the importance of maintaining financial stability and curbing systematic risk. Meanwhile, most developing economies around the world are seeking to increase the inclusiveness of their financial systems. Financial inclusion is critical to inclusive growth and provides policy solutions to remove barriers that exclude people from financial markets. In this regard, the main goal of this study is to investigate the effect of financial inclusion and the size of the shadow economy on the economic growth of MENA countries during the period of 2018-2008. The results of spatial panel model estimation show that financial inclusion has a positive and significant effect on economic growth. This means that financial inclusion is an effective tool in strengthening rapid economic growth. The positive relationship between financial inclusion and economic growth shows that increasing banking penetration, availability of banking centers and geographic penetration can strengthen economic growth in the long run. Also, in the studied economies, the size of the shadow economy has a significant negative effect on economic growth, and this shows that the shadow economy is an obstacle to economic development.


Main Subjects