Impact of financial inclusion on healthcare access: evidence from developing countries

Abstract

PurposeThe aim of this study is to explore how financial inclusion can impact healthcare access in developing countries using panel data for the period 2004–2022.Design/methodology/approachTo check the impact of financial inclusion on healthcare access, the estimation techniques used are the fixed-effect model (FEM), two-stage least squares (2SLS) and the system generalized method of moments (GMM). The data were collected from different websites such as the World Development Indicators (WDI), the United Nations International Children's Emergency Fund (UNICEF) and the United Nations Educational, Scientific and Cultural Organization (UNESCO).FindingsIt is found in the study that financial inclusion has a significant positive effect on healthcare access, and it is also confirmed from previous literature results. The study found that if there are high financial services in the countries, healthcare sectors can be improved by timely facilities, care and funds. Proper development of financial services could be possible by conducting awareness initiatives, financial planning and implementing literacy programs to educate individuals, particularly in rural and underdeveloped areas. According to the results, trade openness and foreign direct investment have a positive impact on healthcare access, while urbanization has negatively influenced healthcare access.Research limitations/implicationsThe limitations of this study were restricted to only 29 developing countries. The main reason behind the lack of availability of data insurance data for developing countries was the limitation in generalizing the results.Practical implicationsThe government and policymakers must check what are the best financial inclusion programs and policies that can be implemented to improve healthcare access. Previous literature does not show visibly the impact of financial inclusion’s dimensions on healthcare access.Originality/valueThis study presents a pioneering examination of financial inclusion and healthcare in 29 lower- and middle-income countries (developing countries). This study has used a comprehensive financial inclusion index of 29 developing countries to cover the overall impact of financial inclusion on healthcare in these countries.