FinTech Investment and GDP Relationship: An Empirical Study for High Income Countries

İlayda İsabetli Fidan; Tuğba Güz

Article Details

FinTech Investment and GDP Relationship: An Empirical Study for High Income Countries

Authors:

İlayda İsabetli Fidan | Tuğba Güz

Publisher:

Dokuz Eylul University

Main Topics:

Ekonomi

Journal:

İzmir İktisat Dergisi Vol.38 Issue 1, pp.215-232

Document Type:

Article

Publication Date:

3/2023

Document Language:

English

Document ID (Org No.):

2001284390

pISSN:

1308-8505

Keywords:

Abstract:

 Technology, the internet, and demographic change have started a rapid transformation in the financial services sector. The widespread use of innovation and technology in financial services in social and economic areas made these services more effective and companies called Fintech have emerged important economic actors. The Fintech sector has generated changes in the traditional financial service understanding and the delivery of these services. In this area, Fintech companies are developing new financial business models with the help of the latest technological developments and offering innovative financial products and services such as payment services, asset management, and insurance services. This study investigates, the relationship between GDP and Fintech investment using panel causality methods from 2014Q1 to 2020Q4 for eight high-income countries: The United States, United Kingdom, Singapore, Australia, Canada, Germany, Israel, and France. The results indicate the existence of cross-sectional dependence among countries. According to Westerlunds panel cointegration test results, a cointegration relationship between two variables has been found in the long run. In the short run, panel Granger causality variables have been found only in Germany. We find a positive effect of Fintech investment on GDP in seven countries, and we see a negative relationship in Singapore.

 Technology, the internet, and demographic change have started a rapid transformation in the financial services sector. The widespread use of innovation and technology in financial services in social and economic areas made these services more effective and companies called Fintech have emerged important economic actors. The Fintech sector has generated changes in the traditional financial service understanding and the delivery of these services. In this area, Fintech companies are developing new financial business models with the help of the latest technological developments and offering innovative financial products and services such as payment services, asset management, and insurance services. This study investigates, the relationship between GDP and Fintech investment using panel causality methods from 2014Q1 to 2020Q4 for eight high-income countries: The United States, United Kingdom, Singapore, Australia, Canada, Germany, Israel, and France. The results indicate the existence of cross-sectional dependence among countries. According to Westerlunds panel cointegration test results, a cointegration relationship between two variables has been found in the long run. In the short run, panel Granger causality variables have been found only in Germany. We find a positive effect of Fintech investment on GDP in seven countries, and we see a negative relationship in Singapore.

 Technology, the internet, and demographic change have started a rapid transformation in the financial services sector. The widespread use of innovation and technology in financial services in social and economic areas made these services more effective and companies called Fintech have emerged important economic actors. The Fintech sector has generated changes in the traditional financial service understanding and the delivery of these services. In this area, Fintech companies are developing new financial business models with the help of the latest technological developments and offering innovative financial products and services such as payment services, asset management, and insurance services. This study investigates, the relationship between GDP and Fintech investment using panel causality methods from 2014Q1 to 2020Q4 for eight high-income countries: The United States, United Kingdom, Singapore, Australia, Canada, Germany, Israel, and France. The results indicate the existence of cross-sectional dependence among countries. According to Westerlunds panel cointegration test results, a cointegration relationship between two variables has been found in the long run. In the short run, panel Granger causality variables have been found only in Germany. We find a positive effect of Fintech investment on GDP in seven countries, and we see a negative relationship in Singapore.

 Technology, the internet, and demographic change have started a rapid transformation in the financial services sector. The widespread use of innovation and technology in financial services in social and economic areas made these services more effective and companies called Fintech have emerged important economic actors. The Fintech sector has generated changes in the traditional financial service understanding and the delivery of these services. In this area, Fintech companies are developing new financial business models with the help of the latest technological developments and offering innovative financial products and services such as payment services, asset management, and insurance services. This study investigates, the relationship between GDP and Fintech investment using panel causality methods from 2014Q1 to 2020Q4 for eight high-income countries: The United States, United Kingdom, Singapore, Australia, Canada, Germany, Israel, and France. The results indicate the existence of cross-sectional dependence among countries. According to Westerlunds panel cointegration test results, a cointegration relationship between two variables has been found in the long run. In the short run, panel Granger causality variables have been found only in Germany. We find a positive effect of Fintech investment on GDP in seven countries, and we see a negative relationship in Singapore. Teknoloji, internet, ve demografik değişim finansal hizmet sektöründe hızlı bir dönüşüm başlatmıştır. Finansal hizmetlerdeki inovasyon ve teknolojinin sosyal ve ekonomik alanda oldukça yaygın kullanımı, bu hizmetleri daha etkin hale getirmiş ve Fintech olarak adlandırılan şirketler önemli bir ekonomik aktör olarak ortaya çıkmıştır. Fintech sektörü, geleneksel finansal hizmet anlayışında ve finansal hizmetlerin sunumumda değişimler meydana getirmiştir. Bu sektörde, Fintech şirketleri, son teknolojik gelişmelerin yardımıyla yeni finansal iş modelleri geliştirmekte ve ödeme hizmetleri, varlık yönetimi, sigorta hizmetleri gibi yenilikçi finansal ürün ve hizmetler sunmaktadır. Bu çalışmada, GSYİH ve Fintech yatırımları arasındaki ilişki, sekiz yüksek gelirli ülke ABD, İngiltere, Singapur, Avustralya, Kanada, Almanya, İsrail ve Fransa için 2014Q1 - 2020Q4 döneminde panel nedensellik yöntemleriyle araştırılmıştır. Elde edilen sonuçlar, ülkeler arasında yatay kesit bağımlılığının varlığını göstermektedir. Westerlund panel eşbütünleşme testi sonuçlarına göre, uzun dönemde iki değişken arasında eşbütünleşme ilişkisi bulunmuştur. Kısa vadede, panel Granger nedensellik yalnızca Almanyada bulunmuştur. Ele aldığımız yedi ülke için Fintech yatırımının GSYİH üzerinde olumlu bir etkisi görülürken, ilgili dönemde Singapur için olumsuz bir ilişkisi olduğu gözlemlenmiştir.

Article Details

FinTech Investment and GDP Relationship: An Empirical Study for High Income Countries

Authors:

İlayda İsabetli Fidan | Tuğba Güz

Publisher:

Dokuz Eylul University

Main Topics:

Ekonomi

Journal:

İzmir İktisat Dergisi Vol.38 Issue 1, pp.215-232

Document Type:

Article

Publication Date:

3/2023

Document Language:

English

Document ID (Org No.):

2001284390

pISSN:

1308-8505

FinTech

Technology

Financial Investments

Economic Growth

FinTech

Teknoloji

Finansal Yatırımlar

Ekonomik Büyüme

Issues

Article Details

Authors: İlayda İsabetli Fidan | Tuğba Güz

Publisher: Dokuz Eylul University

Main Topics: Ekonomi

Journal: İzmir İktisat Dergisi Vol.38 Issue 1, pp.215-232

Document Type: Article

Publication Date: 3/2023

Document Language: English

Document ID (Org No.): 2001284390

pISSN: 1308-8505

Issues

Authors:

İlayda İsabetli Fidan | Tuğba Güz

Publisher:

Dokuz Eylul University

Main Topics:

Ekonomi

Journal:

İzmir İktisat Dergisi Vol.38 Issue 1, pp.215-232

Document Type:

Article

Publication Date:

3/2023

Document Language:

English

Document ID (Org No.):

2001284390

pISSN:

1308-8505