Nexus analysis of financial management, digital finance and new technologies

Abstract

This paper measures the associations between financial development, green finance, and technological progress, focusing on developing countries in Asia and Europe. Employing the FMOLS estimation of variables from 2010 to 2021 concluded that the digital finance index has a positive coefficient in the panel of developing countries and the panel of European developing countries, while the coefficient of this variable is insignificant for Asian developing countries. The financial depth index also has a positive coefficient in all three-panel groups of countries. Regarding the Asian developing economies, there is only a bi-directional causal relationship between the innovation index and financial development. Developing countries can implement developing digital finance markets, improving good governance, increasing the competitiveness index, and creating a regional digital finance network as practical policies.