ADSU International Journal of Applied Economics, Finance and Management

Impact Of Access To Finance On Inclusive Economic Growth In Bunkure Local Government Area, Kano State, Nigeria

Abstract

This study investigates the impact of access to finance on inclusive economic growth in Bunkure LGA, Kano State, Nigeria by analyzing the influence of bank account ownership, access to credit and income mobility. Responses from 400 individuals were considered based on the Taro Yamane formula and employing the logistic regression model. The findings reveal that bank account ownership, credit access and income mobility jointly explain a significant portion (80.80%) of the variation in the likelihood of attaining inclusive economic growth, highlighting the vital role of access to finance in driving inclusive economic growth in Bunkure LGA, Kano State, Nigeria. Also, the non-significant chi-square value of 0.723 indicates a good fit and suggests that all observed data are well represented by the model. Specifically, bank account ownership, access to credit and income mobility indicate the likelihood of being economically inclusive as these key variables exhibit positive and significant effects on inclusive economic growth in Bunkure LGA. This indicates that individuals in possession of bank accounts, credit access and with flexible income levels are classified as economically inclusive. However, a notable finding shows that size of households has a negative but significant effect (-0.372), calling for further exploration into the effectiveness as well as understanding the significant influence of population growth for sustainable and inclusive economic growth. It is therefore recommended that relevant authorities should focus on enhancing the capacity of financial institutions to offer tailored products particularly in underserved areas and thus help bridge the financing gap.