The Nexus of Digital Infrastructure, Financial Inclusion and Economic Growth in Ghana: A Quantitative Analysis

Abstract

Financial inclusion and digital infrastructure are widely recognized as key drivers of economic growth, particularly in developing economies like Ghana. Despite significant advancements in digital infrastructure such as mobile money platform and digital financial services, financial inclusion in Ghana remains uneven, with rural populations and marginalized groups facing limited access to formal financial services. This study examined the relationship between digital infrastructure (MMA), financial inclusion (AMMA), and economic growth (GDP) in Ghana using a Vector Autoregressive (VAR) model, the Vector Error Correction Model (VECM), and Granger causality test with time-series data from 2018 to 2024. Data for the study was obtained from the Bank of Ghana’s (BoG) Database Portal. The results reveal a positive and significant relationship between financial inclusion and economic growth, driven largely by increased mobile money adoption. Similarly, digital infrastructure improvement, particularly the availability of mobile money agents (merchant lines), have contributed to economic growth by improving financial accessibility. The combined impact of financial inclusion and digital infrastructure underscores the importance of a well-integrated financial ecosystem in driving sustainable economic development in the long run. Despite these positive effects, challenges such as financial literacy gaps, digital exclusion in rural areas, and limited access to advanced financial products persist. The study recommends targeted financial literacy programs and expanded digital financial services in underserved areas to maximize the benefits of financial inclusion for Ghana’s long-term economic growth.