BLUF: Financial innovation and trade openness play crucial roles in enhancing financial inclusion and promoting capital formation in Arab countries, according to a study analyzing the impacts of financial innovation on financial inclusion from 2004 to 2020. The study reveals the significant correlation between financial innovation and bringing unbanked individuals into the financial network, while also noting the mixed effects of foreign direct investment (FDI) and the directive role of trade openness in the financial inclusion process.
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