Journal of Economics and Behavioral Studies (ISSN: 2220-6140) Vol. 10, No. 6A, pp. 43-55, 2018 43 Financial Inclusion and the Trade-Growth Nexus: Evidence from the Emerging Zimbabwean Economy Alexander Maune University of South Africa, Pretoria, South Africa alexandermaune6@gmail.com Abstract: This study examined the effect of financial inclusion in the trade-growth nexus in Zimbabwe using time series data collected from the World Bank databases from 1980 to 2016. The study precisely examined whether financial inclusion is a passage within which trade openness impacts growth in Zimbabwe. Also examined was the complementarity effect of financial inclusion and trade openness on growth. The effect of financial inclusion and trade openness on growth has received much attention from researchers across the globe and literature is awash with theoretical and empirical evidence of such studies. What is yet to be examined is whether financial inclusion is a passage within which trade openness influences growth. The study finds a negative significant effect of financial inclusion and trade openness on growth in Zimbabwe. Moreover, the findings show a complementary, strong and positive nexus linking financial inclusion and trade openness on growth in Zimbabwe. Policy-makers are, however, implored to formulate policies meant to deepen financial inclusion in order to enhance growth through trade openness. The article will help expand the academic knowledge and as such contribute in filling the gap that exists within the body of knowledge. The article is important to policy-makers, the academia, private sector and researchers at large. Keywords: Financial Inclusion, Economic Growth, Trade Openness, Emerging Economy, Zimbabwe 1. Introduction Background of the Study: Globally, financial inclusion has attracted a lot of attention from policy-makers, governments and researchers as one of the main pillars of economic development. Regionally and nationally, financial inclusion (FI) has also been embraced as one of the most important aspects of fostering development. The importance of FI in economic development and growth has, however, seen the formation of organisations or networks such as the Global Partnership for Financial Inclusion (GPFI) and the Alliance for Financial Inclusion (AFI) with the main thrust of developing national financial inclusion policies and strategies. Despite the role of FI in economic development and growth, studies have shown that more than 2.7 billion people are still financially excluded (Otchere, 2016). Otchere (2016) further argues that about 400 million small to medium enterprises (SMEs) are also financially excluded in developing countries. To Evans (2015), 23% of Africa`s adult population holds an account at the bank, despite how critical or important FI is in the development and growth of a country. Although prior studies have yielded mixed and inconclusive results concerning the nexus between trade openness and GDP, there seems to be some consensus as the majority of the studies contend that trade has an influence on economic growth. For example, Keho (2017) finds a positive significant nexus between trade and GDP in the short and long run. More so, his study shows a strong, positive and complementary trade-capital formation nexus on economic growth. To Keho (2017), many studies have shown a positive nexus existing between trade openness and GDP. Some of the studies include (Frankel & Romer, 1999); (Dollar & Kraay, 2004); (Freund & Bolaky, 2008) and (Chang, Kaltani, & Loayza, 2009). Other studies such as (Vlastou, 2010); (Ulaşan, 2015); (Polat, Shahbaz, Rehman, & Satti, 2015) and (Musila & Yiheyis, 2015), however, deny the presence of a positive trade-GDP nexus (Keho, 2017). Keho (2017) points out that the mixture of results from the empirical studies can be ascribed to three factors which are (1) the sample size (countries), (2) the econometric models, and (3) the proxy used for trade openness. From all these studies, the role of FI in the trade-growth nexus has been silent. Though many studies regarding the impact of FI on economic growth have been done previously, the role of FI in boosting trade openness` ability to influence economic growth and development has received little attention if any. The study works towards influencing Zimbabwe`s FI policies to not only influence trade nonetheless should also enhance the effect of trade on GDP. The article intends to reinforce that economic growth in Zimbabwe is influenced by FI and trade indicators separately. Organization of the Remainder of the Article: The rest of the article is arranged in the following major headings: literature review, methodology, data analysis & interpretation, conclusion and references.