Abstract:

This study examined the theoretical sign underlying the relationship between financial inclusion and economic growth, considering exogenous shocks for USA, Nigeria and China. The findings show that the two indicators of financial inclusion capitalization per head and credit to the private sector have positive relationship with economic performance in USA and Nigeria. Meaning that economic growth is driven positively by financial inclusion. However, there is negative relationship between credit to the private sector and economic growth in China, but capitalization per head still has positive impact on performance. The study also affirm that monetary policy shocks influence economic growth and financial inclusion in each of the three countries. Therefore, we recommend that policy makers should enforce a more competitive market determined interest rate.