Finally, although progressivity can help reduce income inequality, it has no effect on the relationship
between income inequality and economic growth. By contrast, financial inclusion improves the
relationship between income inequality and economic growth. The reduction in income inequality
through financial inclusion changes the negative relationship between income inequality and economic
growth into a positive relationship. This trend is stronger in high-fragility countries than in lowfragility
countries. Taken together, financial inclusion is more effective than progressivity in improving
income inequality, and, ultimately, it changes the typical negative relationship between income
inequality and economic growth into a positive relationship.