The Effect of Financial Technology on Economic Growth in Selective Sub-Sahara Countries,

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Date

2023-06-09

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A.A.U

Abstract

The use of financial technology, or fintech, in sub-Saharan Africa (SSA) during the past few years has significantly altered the region's access to and provision of financial services. This study used two-step systems GMM to examine the relationship between SSA's economic growth between 2010 and 2021 and the use of fintech. In order to examine the causal relationships between fintech and economic growth, the study also applied the Granger non-causality Test. According to the findings, financial accessibility mediates the benefits of fintech on economic growth in SSA nations, where it is favorably and significantly associated with fintech usage. The effects are unidirectional running from fintech to economic growth. Therefore, an increase in fintech will promote economic growth in sub-Saharan Africa, necessitating the adoption and application of policies and initiatives that promote fintech in SSA. Fintech should benefit everyone equally; hence it is important to continue prioritizing initiatives to increase financial inclusion.

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Keywords

Technology, Economic Growth, Sub-Sahara Countries,

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