The Female Financial Inclusion and the Sustainable Development in MENA Countries

Authors

1 University of Tunis, Tunis, Tunisia; Higher Institute of Management of Tunis, , Tunis 2000, Tunisia

2 Quantitative Methods Departement, Faculty of Economics and Management of Tunis, Lab : LAREQUAD, University of Tunis El Manar- Tunisia

3 Department of Quantitative Methods,Faculty of Economics and Management of Mahdia, University of Monastir- Tunisia.

Abstract

This paper tries to examine the effect of Microfinance on the sustainable development in a group of Middle East and North Africa countries (MENA). Can we consider that Microcredits are performing instrument for the sustainable development in MENA countries? To answer this question, we chose a period from 1990 to 2018 and a sample of 10 MENA countries was selected. In the empirical analysis, we examined the linear fit of this long-term relationship within an error correction (ECM) model. We founded that 67% of sustainable development imbalance will be corrected by micro-financial institutions as the speed of adjustment brings this imbalance back to a stable state in the long term. Subsequently, we adopted the GMM method to determine the dynamics of sustainable development. Our results showed that that women's participation in economic life in the MENA region does not have a significant impact on sustainable development. The research paper advises to end the gender disparity in employment, which will enhance the women’s likelihood to gain access to formal financial services. It also advises to boost women’s financial education this will lead to strengthen their financial capacities. This advice will help to reach a sustainable development in country’s level.

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