Vol. 78 No. 1 (2023)
Research Articles

Examining financial inclusion-agricultural productivity connection in south asian countries: evidence from FMOLS and DOLS approaches

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  • Susanta Kumar Sethy,
  • Phanindra Goyari
Susanta Kumar Sethy
Department of Economics, Rajendra University
Phanindra Goyari
School of Economics, University of Hyderabad
DOI: https://doi.org/10.36253/rea-14079

Published 2023-09-26

Keywords

  • financial inclusion,
  • financial inclusion index,
  • agricultural productivity,
  • FMOLS and DOLS

How to Cite

Sethy, S. K., & Goyari, P. (2023). Examining financial inclusion-agricultural productivity connection in south asian countries: evidence from FMOLS and DOLS approaches. Italian Review of Agricultural Economics (REA), 78(1), 33–48. https://doi.org/10.36253/rea-14079

Copyright (c) 2023 Susanta Kumar Sethy, Phanindra Goyari

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

The main purpose of this paper is to examine the impact of financial inclusion on agricultural productivity in South Asian countries from 2004 to 2018. By following the Human Development Index method, we construct a multidimensional time-varying financial inclusion index to measure the level of financial inclusion. The long-run elasticity of financial inclusion on agricultural productivity is examined by using the FMOLS and DOLS approaches. The empirical results confirm that financial inclusion has a positive impact on agricultural productivity. Furthermore, the interaction term between financial inclusion and human capital is positively associated with agricultural productivity. These results suggest that South Asian countries can increase agricultural productivity by improving the coverage of financial inclusion in the long run.

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