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

摘要

Earlier studies accept that both Financial Inclusion (FI) and Information and Communication Technology (ICT) individually play positive role in economic growth. Moreover, ICT applications like mobile phone and internet penetration are being increasingly utilized in banking sector. The present study has shown that ICT development can be an important determinant of Financial Inclusion by using a fixed-effect panel data model of 41 countries. The paper further contributes by highlighting the role of FI, powered by a better ICT penetration, in fostering the growth of the countries in a Dynamic Panel Data Model. The results suggest that both FI individually and once coupled with mobile and internet can improve the per capita growth. However, in developing countries, the role of ICT indicators in fostering financial inclusion and therefore growth is not very promising. From the policy perspective, it suggests that more investment in educating people about the usage of ICT in formal banking sector is required.