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The Asymmetric Impact of Fintech Innovation on Financial Inclusion and Economic Growth: A Cross-Country Panel Data Analysis

Authors: Pankaj Pachauri

Published: 2025-05-02 00:42:27.715

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Abstract

This study investigates the asymmetric relationship between fintech innovation, financial inclusion, and economic growth across a panel of countries. Utilizing a comprehensive dataset and employing advanced econometric techniques, including fixed effects regression and quantile regression, we examine how the varying degrees of fintech development influence financial inclusion levels and, consequently, economic growth trajectories. The analysis reveals that the impact of fintech is not uniform across different countries or income levels. Specifically, we find that fintech innovations have a more pronounced effect on financial inclusion in emerging markets and developing economies, leading to a subsequent boost in economic growth. However, the relationship exhibits diminishing returns, and in some cases, negative externalities emerge in countries with already high levels of financial inclusion and technological adoption. The findings provide valuable insights for policymakers seeking to leverage fintech for inclusive growth and highlight the importance of tailored strategies that account for country-specific contexts and the stage of fintech development.

Keywords

Fintech, Financial Inclusion, Economic Growth, Asymmetric Effects, Panel Data Analysis, Emerging Markets, Developing Economies, Digital Finance, Technological Innovation

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How to Cite

Pankaj Pachauri, (2025-05-02 00:42:27.715). The Asymmetric Impact of Fintech Innovation on Financial Inclusion and Economic Growth: A Cross-Country Panel Data Analysis. JANOLI International Journal of Economics and Management Science , Volume MejgkunYNoDF1a6qqjpe, Issue 2.

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