Financial inclusion and economic uncertainty in developing countries: The role of digitalisation
This study examines the nexus between financial inclusion and digitalisation on economic uncertainty and evaluates the moderation effect of digitalisation on the financial inclusion–economic uncertainty relationship. Two econometric techniques — generalised method of moments (GMM) estimators and qua...
| Main Authors: | , , , |
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| Format: | Article |
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Elsevier
2023
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| Online Access: | http://psasir.upm.edu.my/id/eprint/108005/ |
| _version_ | 1848865047671996416 |
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| author | Md. Jamil, Abd Rahim Siong, Hook Law Khair-Afham, Mohamad M.S. Trinugroho, Irwan |
| author_facet | Md. Jamil, Abd Rahim Siong, Hook Law Khair-Afham, Mohamad M.S. Trinugroho, Irwan |
| author_sort | Md. Jamil, Abd Rahim |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | This study examines the nexus between financial inclusion and digitalisation on economic uncertainty and evaluates the moderation effect of digitalisation on the financial inclusion–economic uncertainty relationship. Two econometric techniques — generalised method of moments (GMM) estimators and quantile regression were employed to assess the relationship. We use a panel dataset of 73 developing countries representing lower-middle-income and upper-middle-income economies between 2004 and 2019. Our main findings from the GMM estimator reveal that digitalisation plays a role in increasing economic uncertainty. However, financial inclusion is an insignificant predictor of economic uncertainty in developing countries. Meanwhile, the interaction term between the financial inclusion and digitalisation variables on economic uncertainty is insignificant. This study also employs the panel quantile regression model to further explain the relationship. The result of quantile regression indicated that financial inclusion is vital in lessening economic uncertainty at the low quantile of economic uncertainty. Digitalisation also shows a significant positive relationship in both low and high quantiles, indicating that an upsurge in digitalisation is linked with a rise in economic uncertainty. Finally, we find a more substantial interaction effect in increasing economic uncertainty, especially in the low quantile distribution of economic uncertainty. |
| first_indexed | 2025-11-15T13:58:30Z |
| format | Article |
| id | upm-108005 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-15T13:58:30Z |
| publishDate | 2023 |
| publisher | Elsevier |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-1080052024-09-26T04:17:21Z http://psasir.upm.edu.my/id/eprint/108005/ Financial inclusion and economic uncertainty in developing countries: The role of digitalisation Md. Jamil, Abd Rahim Siong, Hook Law Khair-Afham, Mohamad M.S. Trinugroho, Irwan This study examines the nexus between financial inclusion and digitalisation on economic uncertainty and evaluates the moderation effect of digitalisation on the financial inclusion–economic uncertainty relationship. Two econometric techniques — generalised method of moments (GMM) estimators and quantile regression were employed to assess the relationship. We use a panel dataset of 73 developing countries representing lower-middle-income and upper-middle-income economies between 2004 and 2019. Our main findings from the GMM estimator reveal that digitalisation plays a role in increasing economic uncertainty. However, financial inclusion is an insignificant predictor of economic uncertainty in developing countries. Meanwhile, the interaction term between the financial inclusion and digitalisation variables on economic uncertainty is insignificant. This study also employs the panel quantile regression model to further explain the relationship. The result of quantile regression indicated that financial inclusion is vital in lessening economic uncertainty at the low quantile of economic uncertainty. Digitalisation also shows a significant positive relationship in both low and high quantiles, indicating that an upsurge in digitalisation is linked with a rise in economic uncertainty. Finally, we find a more substantial interaction effect in increasing economic uncertainty, especially in the low quantile distribution of economic uncertainty. Elsevier 2023 Article PeerReviewed Md. Jamil, Abd Rahim and Siong, Hook Law and Khair-Afham, Mohamad M.S. and Trinugroho, Irwan (2023) Financial inclusion and economic uncertainty in developing countries: The role of digitalisation. Economic Analysis and Policy, 79. pp. 786-806. ISSN 0313-5926 https://linkinghub.elsevier.com/retrieve/pii/S0313592623001613 10.1016/j.eap.2023.06.039 |
| spellingShingle | Md. Jamil, Abd Rahim Siong, Hook Law Khair-Afham, Mohamad M.S. Trinugroho, Irwan Financial inclusion and economic uncertainty in developing countries: The role of digitalisation |
| title | Financial inclusion and economic uncertainty in developing countries: The role of digitalisation |
| title_full | Financial inclusion and economic uncertainty in developing countries: The role of digitalisation |
| title_fullStr | Financial inclusion and economic uncertainty in developing countries: The role of digitalisation |
| title_full_unstemmed | Financial inclusion and economic uncertainty in developing countries: The role of digitalisation |
| title_short | Financial inclusion and economic uncertainty in developing countries: The role of digitalisation |
| title_sort | financial inclusion and economic uncertainty in developing countries: the role of digitalisation |
| url | http://psasir.upm.edu.my/id/eprint/108005/ http://psasir.upm.edu.my/id/eprint/108005/ http://psasir.upm.edu.my/id/eprint/108005/ |