Financial inclusion, income inequality and economic growth. The case of Morocco

Abstract

Financial inclusion as an alternative solution for reducing income inequalities, we have examined, the effects of the development of financial inclusion on income inequalities in Morocco. Our results show that the financial inclusion index which measures the dimension of access to the banking sector significantly reduces income inequalities in Morocco. In line with IMF studies and other work by World Bank researchers, there is a strong correlation between financial inclusion and reduced income inequality. Empirical results have also shown that economic growth in Morocco increases inequalities in the distribution of income. This means that the economic growth achieved in these countries is still insufficient to significantly reduce income inequalities, which continue to show upward resistance as evidenced by the latest Global Inequality Report.