Does financial inclusion and ICT influence the economic growth - an evidence from select emerging economies using panel data estimates

Oct 23, 2026

Information Communication Technology (ICT) contributions to financial services and economic growth are extensively studied, yet the mechanisms linking ICT adoption with financial inclusion and wider economic outcomes remain crucial for emerging economies. This research uses panel data estimates to assess how ICT enables financial services and supports sustainable economic growth across 12 emerging economies between 2010 and 2024. Results highlight the importance of digital financial services and ICT infrastructure, and suggest moderate GDP effects from fixed telephone lines and mobile subscribers.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages9

Reading Time23 min

AccessFree to download

Introduction

Financial inclusion and economic growth

ICT and technology in economic development

ICT applications in finance

Policy context and research focus

International Journal of Accounting and Economics Studies, 12 (1) (2025) 41-49 International Journal of Accounting and Economics Studies [Website: www.sciencepubco.com/index.php/IJAES](Website: www.sciencepubco.com/index.php/IJAES) [https://doi.org/10.14419/xsnv7178](https://doi.org/10.14419/xsnv7178) Research paper Does financial inclusion and ICT influence the economic growth: an evidence from select emerging economies using panel data estimates Shylaja H. N. 1 , Sathish Pachiyappan 2*, B. S. Arjun 2, Chandrakala G. 3, Janani Ravinagarajan 4 1 Department of Commerce, Manipal Academy of Higher Education, Manipal, India 2 School of Business and Management CHRIST University Bannerghatta Road Campus, Bengaluru- 560076 Karnataka, India 3 School of Commerce and Management studies, Dayananda Sagar University, Karnataka, India 4 Shiv Nadar University Chennai, Tamilnadu, India *Corresponding author E-mail: [sathish.p@christuniversity.in](sathish.p@christuniversity.in) Received: March 12, 2025, Accepted: April 10, 2025, Published: April 21, 2025 Abstract Information Communication Technology (ICT) 's contribution to financial services and economic growth is extensively researched. With technological development, the financial systems are converging with ICT platforms, thereby leading to digital financial systems, creating opportunities that bridge the gap between affluent and disadvantaged sections in emerging economies. In this study, we employ the panel data estimation method to evaluate the impact of ICT in providing financial services that would lead to sustainable economic growth in 12 emerging economies from 2010 to 2024. The findings emphasize the critical role of digital financial services and ICT infrastructure in boosting financial inclusion and driving inclusive economic growth. The Random Effect model has inferred that there exists a moderate effect of fixed telephone lines and mobile cellular subscribers on GDP by simplifying digital applications, integrating regional languages. By ensuring secure systems in places, the regulators and service providers can contribute to the sustainable economic growth of both the country and the underserved communities. Keywords: Digital Financial Inclusion; Sustainable Economic Growth; Panel Data; ICT; Financial Inclusion. 1. Introduction Financial Inclusion (FI) and Information Communication Technology (ICT) play an increasingly recognized role in fostering economic growth. A process that ensures the availability of financial services to all sections of society irrespective of their cast, creed, religion, or social status is termed financial inclusion (RBI Annual Report, 2014) . Financial inclusion is pivotal in reducing inequality, enhancing economic stability, and empowering marginalized populations (Demirgüç-Kunt et al., 2018) . In the context of inclusive development, FI plays a crucial role as it helps in tackling poverty, inequality, thereby addressing the Millennium Development Goals (Chibba M, 2009) . With access to the basic account at either a bank or a financial institution, people will start using different banking services like credit, insurance, etc, and this would lead to improvement in their overall quality of life (Global Partnership for Financial Inclusion, 2016) . With access getting created for all, there will be an opportunity to lift themselves from extreme poverty (Wang et al. 2022; Beck et al., 2007; Owen and Pereira 2018; Mehrotra and Yetman 2015; Asante et al. 2023) . Participation from a larger section of the society would ensure higher mobilization of financial reserves, thus ensuring creation of values for businesses, which impacts socioeconomic growth (Park and Mercado 2015; Kim 2016; Nanda and Kaur 2016). Given the established importance ofFI, not just the countries but also the United Nations has prioritised financial inclusion in its Sustainable Development Goals (Ozili 2021) . With the provision of financial services,

FAQs

What is the main research question of this paper?

The paper examines whether financial inclusion and ICT influence economic growth, using evidence from selected emerging economies with panel data estimates.

Which method is used to evaluate ICT’s impact in the study?

The study employs panel data estimation to evaluate the impact of ICT on providing financial services that lead to sustainable economic growth.

What do the findings emphasize about ICT and growth?

The findings emphasize the critical role of digital financial services and ICT infrastructure in boosting financial inclusion and driving inclusive economic growth, including moderate GDP effects from fixed telephone lines and mobile cellular subscribers.

Oct 23, 2026

Upload by Callum