A1 Refereed original research article in a scientific journal
Advancing Sustainable Development Through Digital Transformation and Fintech Innovation
Authors: Sayari, Sonia; Mgadmi, Nidhal; Ben Dhaou, Imed; Almehdar, Mohammed; Chishty, Syed Khusro; Rabeh, Abbassi
Publisher: MDPI AG
Publishing place: BASEL
Publication year: 2025
Journal:Sustainability
Journal name in sourceSustainability
Journal acronym: SUSTAINABILITY-BASEL
Article number: 4924
Volume: 17
Issue: 11
Number of pages: 22
eISSN: 2071-1050
DOI: https://doi.org/10.3390/su17114924
Web address : https://doi.org/10.3390/su17114924
Self-archived copy’s web address: https://research.utu.fi/converis/portal/detail/Publication/499180832
Purpose: Our study investigates the combined effects of financial technologies (fintech) and the digital economy on sustainable development, considering geopolitical risks as a moderating factor. Origin: While sustainable development is a global imperative, the integrated roles of digital transformation and fintech remain insufficiently explored. Our research addresses this gap by analyzing their impacts on socioeconomic advancement and environmental sustainability across diverse contexts. Methodology: Employing panel data from 30 developed and developing countries between 1990 and 2023, we assess sustainable development using the Environmental Performance Index (EPI) and the Human Development Index (HDI). Independent variables include proxies for the digital economy (e.g., internet usage, mobile subscriptions, and high-tech exports) and fintech (e.g., digital payments, digital currency, and peer-to-peer lending). The Geopolitical Risk Index (GPRI) is used to evaluate the effect of political instability. We apply generalized least squares (GLS) and fixed-effects estimation (within) to ensure robustness. Findings: Our results indicate that digital transformation and fintech significantly foster socioeconomic development and environmental performance, even amidst geopolitical instability. Key variables such as digital payments and internet access show substantial positive impacts, providing valuable insights for policymakers aiming to enhance resilience and sustainability. Contributions: Our article offers a comprehensive evaluation of how the digital economy and fintech jointly influence sustainable development under geopolitical risks, providing a nuanced understanding for policymakers and researchers.
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