The Interplay between Digitalization, Education and Financial Development: A European Case Study

Alexandra Horobet, Irina Mnohoghitnei, Emanuela Marinela Luminita Zlatea and Lucian Belascu
Additional contact information
Alexandra Horobet: Department of International Business and Economics, Bucharest University of Economic Studies, 010374 Bucharest, Romania
Irina Mnohoghitnei: Department of International Business and Economics, Bucharest University of Economic Studies, 010374 Bucharest, Romania
Emanuela Marinela Luminita Zlatea: Department of International Business and Economics, Bucharest University of Economic Studies, 010374 Bucharest, Romania
Lucian Belascu: Department of Management, Marketing and Business Administration, “Lucian Blaga” University of Sibiu, 550324 Sibiu, Romania

JRFM, 2022, vol. 15, issue 3, 1-23

Abstract: The paper explores the relationship between education, digitalization, and financial development between 1996 and 2019 with the aim of showcasing the differences between developed and emerging economies in Europe. We use a Bayesian VAR framework that includes variables related to education, digitalization, and financial development, as well as several endogenous variables to control for differences between countries in terms of nominal GDP growth, unemployment rate, and trade openness. Our findings clearly demonstrate the dynamic interdependence between financial development—including its two main components, financial institutions, and financial markets, digitalization, and education. Furthermore, we find that education is a leading variable in the financial development–education–digitalization nexus, whereas financial development and digitalization are laggard variables. These findings open possibilities for influencing joint policies on digitalization, education, and financial development, particularly in emerging European countries.

Keywords: financial development; financial institutions; financial markets; education; digitalization; dynamic interdependence; Bayesian VAR; impulse response (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://www.mdpi.com/1911-8074/15/3/135/pdf (application/pdf)
https://www.mdpi.com/1911-8074/15/3/135/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jjrfmx:v:15:y:2022:i:3:p:135-:d:769185

Access Statistics for this article

JRFM is currently edited by Ms. Chelthy Cheng

More articles in JRFM from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().