Deciphering the Influence of Macroeconomic Variables on Fintech Indicators: Evidence from Emerging Market Countries
DOI:
https://doi.org/10.54536/ajfti.v4i1.7189Keywords:
Emerging Market Countries, Exchange Rate, Fintech, GDP, Inflation Rate, Labor Force Participation, PopulationAbstract
The rapid growth of financial technology (FinTech) is reshaping financial services worldwide, yet its interaction with macroeconomic fundamentals in emerging markets remains underexplored. This study investigates the influence of key macroeconomic variables—gross domestic product (GDP), inflation, exchange rate, labor force participation, and population growth—on FinTech development in twenty-five emerging economies between 2014 and 2021. Using panel data techniques, including Fixed Effects estimators and robustness checks with Driscoll–Kraay standard errors, the analysis accounts for heteroskedasticity, autocorrelation, and cross-sectional dependence. The findings reveal that GDP per capita and population growth exert significant positive effects on FinTech adoption, while exchange rate volatility demonstrates a negative association. Inflation and labor force participation display mixed and context-dependent impacts. These results highlight the role of macroeconomic stability and demographic dynamics in fostering FinTech innovation across emerging economies. This study contributes to the literature by offering one of the first large-scale empirical examinations of the macro–FinTech nexus in emerging markets, expanding theoretical insights on digital financial transformation. For policymakers, the results underscore the importance of macroeconomic reforms, digital infrastructure investment, and demographic inclusion strategies to accelerate sustainable FinTech development.
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