This study investigates the asymmetric impact of digital financial inclusion (DFI) on the performance of micro-enterprises in emerging economies, considering the moderating role of institutional quality. Utilizing a comprehensive dataset encompassing various indicators of DFI and micro-enterprise performance, this research employs a robust econometric approach, including regression analysis and interaction effects, to examine the complex relationships. The findings reveal a nuanced picture, indicating that while increased access to digital financial services generally benefits micro-enterprises, the magnitude of the impact varies significantly depending on the specific DFI dimension and the prevailing institutional environment. Specifically, the study demonstrates that higher institutional quality amplifies the positive effects of DFI on micro-enterprise profitability and growth, while weak institutional frameworks can hinder or even negate these benefits. These results underscore the importance of complementary policies that promote both digital financial inclusion and strong governance to maximize the potential of DFI for fostering economic development in emerging economies. The paper concludes with policy recommendations aimed at strengthening institutional capacity and tailoring DFI initiatives to the specific needs and contexts of micro-enterprises.
This paper investigates the asymmetric impact of geopolitical risk (GPR) on renewable energy investment (REI) across a panel of developed and emerging economies. While extant literature acknowledges the influence of political and economic stability on investment decisions, the nuanced and potentially asymmetric effects of GPR, particularly its upward and downward fluctuations, remain relatively unexplored in the context of renewable energy. Using panel data analysis and advanced econometric techniques, including non-linear autoregressive distributed lag (NARDL) models, we examine how positive and negative changes in GPR affect REI. Our findings reveal a significant asymmetric relationship, with negative shocks in GPR exhibiting a more pronounced and detrimental impact on REI than positive shocks. This asymmetry highlights the risk-averse nature of investors in the renewable energy sector and underscores the importance of stable geopolitical environments for fostering sustainable energy transitions. The implications of our research are significant for policymakers seeking to attract REI and promote energy security in an increasingly volatile global landscape.
This study investigates the complex relationship between Environmental, Social, and Governance (ESG) performance, financial risk, and corporate value within emerging market firms. Utilizing a panel data analysis of a comprehensive dataset spanning multiple years and encompassing a diverse range of companies, we explore how ESG practices influence financial risk profiles and, subsequently, corporate valuation. Our findings reveal a nuanced relationship where strong ESG performance can mitigate certain types of financial risk, ultimately contributing to enhanced corporate value. However, the magnitude and direction of this effect are contingent upon industry-specific factors, regional variations, and the specific ESG pillars considered. The study provides valuable insights for investors, policymakers, and corporate managers seeking to understand the strategic implications of integrating ESG considerations into their decision-making processes, particularly within the context of the unique challenges and opportunities presented by emerging economies. We contribute to the growing body of literature on sustainable finance by providing empirical evidence on the interconnectedness of ESG, risk, and value, offering a more holistic understanding of the factors driving long-term firm performance in the 21st century.
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.
This paper investigates the impact of digital financial inclusion (DFI) on sustainable economic growth in emerging economies. Utilizing a panel dataset spanning from 2010 to 2023, we employ the System Generalized Method of Moments (GMM) estimation technique to address potential endogeneity concerns. Our findings reveal a significant positive relationship between DFI, measured through mobile money penetration and internet banking usage, and sustainable economic growth, proxied by GDP per capita growth and environmental performance indicators. The results suggest that DFI facilitates greater access to financial services, promotes entrepreneurship, enhances resource allocation efficiency, and fosters environmentally sustainable practices. This study contributes to the growing body of literature on the role of fintech in promoting inclusive and sustainable development, providing valuable insights for policymakers in emerging economies seeking to leverage digital technologies for economic advancement and environmental protection.