Digital Financial Integration, Investment, Economic Growth, Development and Poverty Reduction

Abstract

In recent years, the global economy has undergone major transformations involving the liberalization of markets for traditional goods, services, and capital flows. This has led to the emergence of a world financial market underpinned by digital platforms, innovative and the rapid growth of integrated digital platforms, integration, investment, economic growth, development, and the potential for poverty reduction, especially, in the Global South and, in particular in sub-Saharan Africa. The goal of this chapter is to investigate the increasing accessibility and relationship between digital (e-economy) financial integration and poverty alleviation since the era of structural adjustment programs in sub-Sahara Africa with Ghana as a case study. The emphasis is on the New Digital Economy (NDE) relative to new sources of data from mobile and ubiquitous Internet connectivity. The processes of digitalization and financial sector integration and inclusion become increasingly contestable, decomposable, and reconfigurable, and the capacity to innovate will be a key success factor in policies geared toward poverty alleviation. The multiple linear regression model and its estimation using ordinary least squares (OLS) is doubtless the most widely used tool in econometrics. It helps to estimate the relation between a dependent variable and a set of explanatory variables. An OLS model for macro data set relative to a regression model is applied to provide the empirical estimations of the increasing accessibility and the relationship between digital financial integration, investment, economic growth, development, and poverty alleviation.

Citation

Kurantin, N. and Osei-Hwedie, B.Z. (2019), "Digital Financial Integration, Investment, Economic Growth, Development and Poverty Reduction", Bhattacharyya, R. (Ed.) The Gains and Pains of Financial Integration and Trade Liberalization, Emerald Publishing Limited, Leeds, pp. 101-112. https://doi.org/10.1108/978-1-78973-999-220191015