European Journal of Economics

The Assessment of Digital Banking on Financial Inclusion in Ethiopia: A Case Study of Selected Commercial Banks

2025-12-29T13:30:59+00:00

Digital banking involves the digitization of traditional banking services and activities, allowing customers to access financial services through internet-connected devices. Financial inclusion refers to ensuring that individuals and businesses have access to affordable and useful financial products and services such as transactions, savings, credit, and insurance, delivered responsibly and sustainably. These two concepts are closely linked, as digital banking provides an important pathway for enhancing financial inclusion by reducing geographic and financial barriers. It offers convenient and low-cost access to essential services, particularly for people in remote or underserved areas. This study examined the impact of digital banking on financial inclusion in Ethiopia, focusing on selected private commercial banks. Ten banks were chosen from the population of all commercial banks, covering the period 2018 to 2023. A descriptive research design and quantitative approach were applied, using both descriptive statistics and econometric methods, including panel regression analysis. Data were gathered directly from bank records and reports. The findings indicate that internet banking, ATM services, and loan provision each have a significant and positive effect on financial inclusion. However, mobile banking and total assets were found to have no significant effect. The regression model explained 88.9% of the variation in financial inclusion, showing that the combined influence of the examined variables is substantial. The study recommends that banks strengthen efforts to promote internet banking and ATM services, as these are the most impactful drivers of financial inclusion in Ethiopia’s private banking sector.

Information and Communication Technology (ICT) Diffusion and Economic Growth in Sub-Saharan Africa: Evidence from Dynamic System GMM Estimation

2026-05-20T07:55:07+00:00

This study investigates the heterogeneous impacts of information and communication technology (ICT) diffusion on economic growth across all 48 Sub-Saharan African (SSA) countries from 2002 to 2023. Employing the Two-Step System Generalized Method of Moments (System GMM) to address endogeneity, dynamic persistence, and unobserved heterogeneity, the study simultaneously examine four distinct ICT indicators: mobile cellular subscriptions, internet usage, fixed broadband subscriptions, and fixed-line telephone subscriptions. Results reveal sharply divergent effects: mobile subscriptions and fixed broadband significantly boost GDP per capita, underscoring their roles as catalysts for financial inclusion and structural transformation. In contrast, internet usage exhibits a robustly negative effect, suggesting that unstructured digital access without complementary investments in digital literacy, institutional quality, or regulatory frameworks may impede growth. Fixed-line telephony also shows a significant negative association reflecting its technological obsolescence in SSA’s mobile-leapfrogged landscape. Diagnostic tests confirm the validity and stability of our preferred specification. These findings challenge the notion of ICT as a monolithic growth engine and highlight that developmental returns are contingent on technology type and enabling conditions. The study offers actionable policy guidance for maximizing the growth dividends of digital transformation in SSA.

The Failure of Mineral-Based Development in Afghanistan

2026-08-06T06:22:47+00:00

Afghanistan's mineral endowment has not produced broad-based development. This article explains the gap through a structured qualitative review of peer-reviewed sector studies and authoritative institutional evidence, updated through mid-2026. Sources are coded against five observable constraints: governance and allocation, security and regulatory risk, infrastructure and capability, formalization and economic linkages, and distribution and welfare. Recent output growth and contract announcements show extractive activity, but coal-export volatility, weak disclosure, limited project implementation, and persistent deprivation indicate that extraction has not become a reliable development process. Comparisons with Mongolia and Chile are used as illustrative benchmarks, not causal controls. The article argues for a sequenced strategy: disclose and trace existing activity first, build regulatory and local capabilities second, and pursue large-scale projects and revenue stabilization only when oversight and project economics are credible.