Financial inclusion, information and communication technology diffusion, and economic growth: a panel data analysis

Abstract

There have been enough evidences to accept that Financial Inclusion (FI) and Information and Communication Technology (ICT) play positive role in economic growth, even though there are some exceptions. Moreover, we cannot deny the fact that ICT like mobile phone and internet penetration can strengthen the inclusiveness of formal banking sector. The present study has first examined whether ICT development can be an important determinant of Financial Inclusion by using a fixed effect panel data model. The results show that ICT is indeed an important determinant of FI. The same panel data of 41 countries was then used to test whether the growth process of the countries are influenced by Financial Inclusion and ICT diffusion in a dynamic Panel Data Model. Further the paper has investigated the role of FI powered by a better ICT penetration in fostering the growth of the nations using system GMM method by incorporating interactions between FI and ICT indicators. The results suggest that both FI and ICT individually and together through their close interaction can improve current year's growth. However, we need education, awareness and technical assistance to get sustained growth.

Determinants of FinTech payment services diffusion by SMEs in Sub-Saharan Africa: evidence from Ghana

“…Consequently, policies to reduce poverty through the provision of financial access to individuals in rural communities via financial technology should include SMEs to promote greater financial inclusion. As such, the improvement in ICT infrastructure and electricity in rural communities can create the right platform for FinTech service providers to reach SMEs (Chatterjee, 2020;Makina, 2019). Theoretically, the result from Model 2a supports the effect of individual characteristics and business environment on the technology diffusion consistent with TAM, TRA, and TBA (Yousafzai et al, 2010), and the TOE Framework (Depietro et al, 1990).…”

“…Technically, the widespread of information communication technology (ICT) provides the bedrock for the upsurge in ICT-enabled services across diverse industries. Consequently, the United Nations, the World Bank, and other esteemed institutions recommend ICT-enabled services as the catalyst for development especially in the least developed and developing economies (Chatterjee, 2020;Demirgüç-Kunt et al, 2020). Therefore, resourceful ICT-enabled innovations are birthed through the quest of industries to simplify tasks, improve efficiency, save cost, and time (Gai et al, 2018).…”

Financial Inclusion and CO2 Emissions in Asia: Implications for Environmental Sustainability

“…Our variable of interest is the nancial inclusion index. We construct a composite indicator of nancial inclusion based on four widely used proxies: branches of commercial banks per 100,000 adults, number of ATMs per 100,000 adults, the amount of bank deposits and the amount of bank credit (Chatterjee, 2020;Le et al, 2020). These proxies cover two keys aspects of an inclusive nancial system; the two former indicators demonstrate the availability of the banking sector and the two latter indicators demonstrate the use of banking system (Van et al, 2019).…”

A Techno-Economic Framework for Installing Broadband Networks in Rural and Remote Areas

“…Thus, clearly, there is a need to adopt strategies that take into account these difficulties, which requires a better method of planning and implementing these services. These might include the following: the creation of tourist villages [36], the growth of agriculture [37], an improvement in logistics and service provision [38], financial inclusion [39], and the dissemination and adoption of digital innovations in rural microenterprises [40], among other factors.…”