Digital financial inclusion, economic freedom, financial development, and growth : implications from a panel data analysis

An all-inclusive financial system is one of the channels through which information and communication technology (ICT) affects economic growth. Digital financial inclusion is an evolving phenomenon that enhances the ease of access to and availability of formal financial services. Further, economic freedom is one of the significant factors affecting financial development and growth. Hence, there is a strong rationale for examining the effect of economic freedom on financial inclusion. However, there is no empirical evidence on the linkages between these variables in the literature. Accordingly, we examined these relationships. The results of a panel data analysis that we performed on a dataset pertaining to emerging economies show that the nexus of ICT diffusion-economic freedom-financial development has a positive impact on financial inclusion in the long run, highlighting the importance of creating an economic environment that is conducive to sustained economic growth. The findings of this study have significant implications from an economic policy standpoint and call for a more holistic approach.