Nexus between fintech and sustainable resource utilization for enhanced economic development: evidence from diverse set of countries

Abstract

In the contemporary landscape of global economics and environmental stewardship, the symbiosis between financial technology (fintech) and green economic growth has emerged as a compelling area of scholarly investigation and policy consideration. Against this backdrop, our study embarks on a comprehensive exploration of the intricate interplay between fintech advancements and the pursuit of sustainable development objectives. Utilizing a robust panel dataset encompassing 66 nations over the expansive timeframe spanning from 2000 to 2022, we employ sophisticated econometric techniques, including fixed effects, random effects regression System Generalized Method of Moments analyses. Our objective is to dissect the nuanced relationship between various fintech variables—namely, the proliferation of Automated Teller Machines (ATMs), the FINDEX index gauging financial inclusion, and the proliferation of internet servers—and the Green Growth (GG) index, a key metric reflecting a nation's commitment to environmentally sustainable economic practices. Our empirical findings yield compelling insights, illuminating a pronounced and statistically significant correlation between fintech adoption and the GG index. This empirical validation underscores the transformative potential of fintech in catalyzing the transition towards greener, more sustainable economies on a global scale.