Universal Journal of Accounting and Finance Vol. 5(3), pp. 55 - 59
DOI: 10.13189/ujaf.2017.050301
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Financial Inclusion Fosters Growth: Simple Multiplier and "AK" Growth Model Analysis

Subrahmanyam Ganti ^*, Debashis Acharya
School of Economics, University of Hyderabad, India

ABSTRACT

This study clearly demonstrates analytically that financial inclusion as the aim of a supply leading strategy of financial development model can clearly create faster growth. Firstly, a multiplier model is used to demonstrating as to how financial inclusion creates more output than in case of a demand following model of financial development. Secondly, the most popular "AK" growth model framework is used to analytically demonstrating the superiority of financial inclusion in creating faster growth. Thirdly, with simple algebra of the well-known Harberger little triangle and rectangle, the superiority of financial inclusion is numerically demonstrated as an integral component of the supply leading financial development strategy.

KEYWORDS
Financial Inclusion, AK Growth Model, Financial Tripod, Jan Dhan Yojna

Cite This Paper in IEEE or APA Citation Styles
(a). IEEE Format:
[1] Subrahmanyam Ganti , Debashis Acharya , "Financial Inclusion Fosters Growth: Simple Multiplier and "AK" Growth Model Analysis," Universal Journal of Accounting and Finance, Vol. 5, No. 3, pp. 55 - 59, 2017. DOI: 10.13189/ujaf.2017.050301.

(b). APA Format:
Subrahmanyam Ganti , Debashis Acharya (2017). Financial Inclusion Fosters Growth: Simple Multiplier and "AK" Growth Model Analysis. Universal Journal of Accounting and Finance, 5(3), 55 - 59. DOI: 10.13189/ujaf.2017.050301.