ICT and financial development: Empirical evidence from ASEAN countries

Tran, Quoc Duy and Huynh, Cong Minh (2022): ICT and financial development: Empirical evidence from ASEAN countries.

Abstract

This paper empirically investigates the impact of Information and Communication Technology (ICT) on financial development proxied by Domestic credit/GDP and Money supply/GDP in ten ASEAN countries over the period 2000-2020. Results from fixed effects for panel data show that ICT stimulates financial development by both proxies. Remarkably, the impact of ICT on financial development proxied by Money supply/GDP is stronger than that proxied by Domestic credit/GDP, implying the important channel of Money supply/GDP through which ICT can stimulate financial development. In addition, other important determinants of financial development are confirmed in the context of ASEAN countries, including economic growth, trade openness, and urbanization. The findings consolidate the utilization of ICT to boost financial development in ASEAN countries.

• Item Type: MPRA Paper
• Language: English
• Keywords: ASEAN countries; Financial development; ICT
• Subjects: L - Industrial Organization > L9 - Industry Studies: Transportation and Utilities > L96 - Telecommunications; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O16 - Financial Markets ; Saving and Capital Investment ; Corporate Finance and Governance; O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O32 - Management of Technological Innovation and R&D; O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O33 - Technological Change: Choices and Consequences ; Diffusion Processes

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