DIGITAL FINANCIAL INCLUSION AND HOUSEHOLD CONSUMPTION DYNAMICS IN MENA ECONOMIES

Bouazza Elamine Zemri

Abstract


This study examines the effect of digital financial inclusion on household consumption dynamics in the economies of the Middle East and North Africa (MENA) using a dynamic panel quantile framework. The analysis is based on a balanced annual panel of 12 economies over the period 2014–2023. Household consumption dynamics are measured by the growth in real household final consumption expenditure per capita, while digital financial inclusion is captured by a composite index that combines digital payments usage, internet access, and mobile connectivity. The results show that the effect of digital financial inclusion is positive but uneven across the conditional distribution of household consumption. The estimated coefficient becomes positive across most quantiles and reaches statistical significance only at the upper quantile. Real gross domestic product per capita growth remains positive and significant across all specifications, while inflation exerts a negative effect in the middle and upper parts of the distribution. The findings suggest that digital financial inclusion can support household welfare, but its effect depends on structural readiness, macroeconomic stability, and the depth of digital access.

Keywords


digital financial inclusion; household consumption; MENA region; dynamic panel quantile model; macro-panel analysis; financial welfare;

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References


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DOI: http://dx.doi.org/10.12709/mest.14.14.02.31

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