NEIFAR, MALIKA and Gharbi, Leila (2025): The country ICT level and the Fintech firm Performance: Evidence from BRICS Countries .
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Abstract
Purpose: The scope of this paper is to investigate if the information and communications technology (ICT) can improve the FinTech firm performance in the BRICS countries from monthly macro time series data during 2014M01-2022M12. Design/methodology/approach: Through the Bayesian VAR-X approach and the time series DYNARDL simulation models, we investigate the impact of the ICT and its components on the firm performance for both the short-run (SR) and the long-run (LR) historical and predictive trend. Besides these regression models, this study applies the Granger Causality (GC) in quantile and the frequency domain (FD) GC tests to show more details about the causality linkage. Findings: From the BVAR-X approach, historical IRFs conclude that the ICT has positive effect on PI for all countries in the SR and a positive effect in the LR only for China. From the DYNARDL simulation models, predictive IRFs results corroborate with the historical IRFs results except for the China and SA in the SR and for Brazil and India in the LR. We conclude in addition that the predictive positive relationships is driven by MCS for Brazil, IUI for China, FBS for SA, and all of the ICT components for the India case. GC type test results are in accordance with previous results. Originality: The novelty of this research is based on the idea of studying the effect of the ICT on FinTech firm performance by using several time series data based dynamic technics so that we can estimate and predict the SR adjustments that arise from the impact of ICT to the LR relationship with the firm profitability.
Item Type: | MPRA Paper |
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Original Title: | The country ICT level and the Fintech firm Performance: Evidence from BRICS Countries |
English Title: | The country ICT level and the Fintech firm Performance: Evidence from BRICS Countries |
Language: | English |
Keywords: | FinTech Firm from BRICS area; Bayesian VAR-X model; DYNARDL simulation model; Historical and predictive IRFs for SR and LR effects; Granger Causality test in quantile (QGC); Frequency domain Granger causality (FDC) test |
Subjects: | C - Mathematical and Quantitative Methods > C0 - General > C01 - Econometrics C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods and Methodology: General > C11 - Bayesian Analysis: General C - Mathematical and Quantitative Methods > C2 - Single Equation Models ; Single Variables > C22 - Time-Series Models ; Dynamic Quantile Regressions ; Dynamic Treatment Effect Models ; Diffusion Processes C - Mathematical and Quantitative Methods > C5 - Econometric Modeling > C53 - Forecasting and Prediction Methods ; Simulation Methods D - Microeconomics > D2 - Production and Organizations > D22 - Firm Behavior: Empirical Analysis |
Item ID: | 123778 |
Depositing User: | Pr Malika NEIFAR |
Date Deposited: | 14 Mar 2025 07:55 |
Last Modified: | 14 Mar 2025 07:55 |
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URI: | https://mpra.ub.uni-muenchen.de/id/eprint/123778 |