Result of panel cointegration test.

The present paper aims to study the impacts of financial innovation on financial inclusion for selected 22 Arab countries from 2004 to 2020. It considers financial inclusion as a dependent variable. It describes ATMs and the number of commercial banks’ depositors as proxy variables. In contrast, financial inclusion is considered an independent variable. We used the ratio between broad and narrow money to describe it. We employ several statistical tests such as lm, Pesaran, and shin W-stat, a- tests for cross-section dependence, and unit root and panel granger causality with NARDL and system GMM approaches. The empirical results reveal the significant nexus between these two variables. The outcomes suggest that adaptation and diffusion of financial innovation play catalyst roles in bringing unbanked people into the financial network. In comparison, the inflows of FDI establish mixed positive and negative effects, which vary with model estimation following different econometrical tools. It is also revealed that FDI inflow can augment the financial inclusion process, and trade openness can play a directive role and enhance the financial inclusion process. These findings suggest that financial innovation, trade openness, and institutional quality should continue in the selected countries to enhance financial inclusion and promote capital formation in the selected countries.本研究旨在探究2004至2020年间，22个选定阿拉伯国家的金融创新对金融包容的影响。本研究将金融包容设定为因变量，以自动柜员机（ATMs）数量与商业银行储户数量作为其代理变量；与之相对，将金融创新设定为自变量，并以广义货币与狭义货币的比值作为其代理变量。本研究采用多项统计检验方法，包括lm检验、Pesaran-Shin W统计量、截面相关性a检验、单位根检验，以及结合非线性自回归分布滞后（NARDL）与系统广义矩估计（system GMM）方法的面板格兰杰因果检验。实证结果表明，两类变量间存在显著关联。研究结果显示，金融创新的适配与扩散在推动无银行账户群体接入金融网络的过程中发挥了催化剂作用。与之相对，外国直接投资（FDI）流入的影响呈现正负混合效应，且该效应会因采用不同计量工具进行模型估计而有所差异。研究同时发现，FDI流入可助推金融包容进程，而贸易开放度则可发挥直接促进作用，进一步提升金融包容水平。上述研究结果表明，选定的阿拉伯国家应持续推进金融创新、扩大贸易开放并完善制度质量，以提升金融包容水平，促进样本国家的资本形成。