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HOW NEW FINANCIAL TECHNOLOGIES RESOLVE ECONOMIC STAGNATION: THE FINANCIAL PERSPECTIVE

JHIH-HONG ZENG

Department of Economics, Chinese Culture University, Taipei, Taiwan

E-mail Address: jehun_tze@yahoo.com.tw

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and

MING-FU HSU

Department of Business Management, National United University, No. 1 Lienda, Miaoli 360301, Taiwan

E-mail Address: hsumf0222@gmail.com

Corresponding author.

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https://doi.org/10.1142/S2194565923500057Cited by:1 (Source: Crossref)

Abstract

This research explores how new financial technologies are able to resolve economic stagnation by considering two dimensions of financial technology’s spread: the spread to poor people and that to rural area people. Based on a sample of 109 countries, our findings indicate that the spread of new financial technologies to poor people not only benefits economic growth directly, but also generates an indirect positive influence on economic growth via the channel of financial institutions’ development. By comparison, the effect of spreading financial technologies to rural area people on stimulating economic growth is insignificant. Lastly, we offer some policy implications associated with the results.

Keywords:

JEL: G18, G28, O11, O33

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