Time: 13:00-15:00 (GMT), Wednesday, 2 December 2020
Presenter: Professor Joshua Y. Abor, University of Ghana Business School
Chair: Professor Victor Murinde, SOAS University of London
Online venue: Click here to join the CGF Seminar Room on Microsoft Teams (For any inquiry about how to join the online seminar, please contact Dr Meng Xie: xm1@soas.ac.uk)

Abstract
The study examines the impact of private capital flows (FDI, portfolio investment and debt flows) on financial inclusion and the moderating roles of domestic financial markets and institutions. The study uses OLS as well as 2SLS and GMM to control for possible endogeneity issues to estimate data for 90 countries from 2004 to 2019. The results largely show that private capital flows have a direct positive effect on inclusive finance. Further the analysis reveals that while domestic financial markets (Private sector credit, M2 and Stock market) have direct positive effects on financial inclusion, domestic financial markets may be a substitute for private capital flows, especially FDI flows. The marginal effect between private capital flows and financial markets at minimum and average levels are positive, while at maximum levels of financial market development, the substitution effect is seen. Similar results are seen when we interact private capital flows and institutional quality. The study also shows that per capita income, ICT penetration, and share of adult population improve financial inclusion. While secondary education is not enough to improve financial inclusion, higher gross tertiary enrolment consistently improves financial inclusion.

Authors: Joshua Y. Abor, Richard A. Dwumfour, Elikplimi K. Agbloyor, Lei Pan

Presenter

Joshua Yindenaba Abor is a financial economist, qualified accountant and Professor of Finance with many years’ expertise, mainly in development finance and economics research, but with senior-level stints at practitioner, policy and consulting roles. He holds a PhD in Finance from the University of Stellenbosch in Cape Town South Africa after completing the PhD coursework (Financial Economics) at the Department of Economics, Harvard University, US. He is also a Fellow of the Association of Chartered Certified Accountants (FCCA) (UK). Joshua has a solid track record in capacity building and continuous professional development, mainly as former Dean of one of the largest Business Schools in Africa – University of Ghana Business School. He is an Adjunct Professor of Development Finance at the University of Stellenbosch Business School and is a researcher with the African Economic Research Consortium. He is an External Fellow at the Centre for Global Finance, SOAS University of London and a Fellow at the Ghana Academy of Arts and Sciences as well as the International Institute for Advanced Studies, Ghana. He has held Visiting Scholar positions at the International Monetary Fund (IMF), Washington DC, US. He also serves on the boards of some companies, including SAS Finance Group and chairs the boards of Best Western Premier Hotel and Macro Shipping Ltd. He chaired the board of SIC Life Company Ltd and is currently a member of the Bank of Ghana Monetary Policy Committee.