The Mechanism of DIF’s Effect on Economic Growth: Evidence from Seven Countries

Abstract

Digital Financial Inclusion (DIF) gains growing momentum as digitalization accelerates and financial technologies burgeon in recent years. This study finds some causes of DIF's impact on economic growth with multiple linear regression analyses under mediating variables. Based on data from seven global countries from 2011-2021, the empirical result finds that innovation, coverage, literacy, and attitude play essential roles in driving economic growth in DIF, respectively, and cooperatively. Future implications derived from the results are that policymakers should incentivize investments in R&D, network infrastructure, financial education programs, and financial awareness campaigns, enhance consumer protection against malpractice and fraud, and foster trust by strengthening regulations on corporate responsibility.