 The country ICT level and the Fintech firm Performance: Evidence from BRICS Countries Malika Neifar and Leila Gharbi MPRA Paper from University Library of Munich, Germany Abstract: Purpose The scope of this paper is to investigate if the information and communications technology (ICT) can improve the FinTech firm performance in the BRICS countries from monthly macro time series data during 2014M01-2022M12. Design/methodology/approach Through the Bayesian VAR-X approach and the time series DYNARDL simulation models, we investigate the impact of the ICT and its components on the firm performance for both the short-run (SR) and the long-run (LR) historical and predictive trend. Besides these regression models, this study applies the Granger Causality (GC) in quantile and the frequency domain (FD) GC tests to show more details about the causality linkage. Findings From the BVAR-X approach, historical IRFs conclude that the ICT has positive effect on PI for all countries in the SR and a positive effect in the LR only for China. From the DYNARDL simulation models, predictive IRFs results corroborate with the historical IRFs results except for the China and SA in the SR and for Brazil and India in the LR. We conclude in addition that the predictive positive relationships is driven by MCS for Brazil, IUI for China, FBS for SA, and all of the ICT components for the India case. GC type test results are in accordance with previous results. Originality The novelty of this research is based on the idea of studying the effect of the ICT on FinTech firm performance by using several time series data based dynamic technics so that we can estimate and predict the SR adjustments that arise from the impact of ICT to the LR relationship with the firm profitability. Keywords: FinTech Firm from BRICS area; Bayesian VAR-X model; DYNARDL simulation model; Historical and predictive IRFs for SR and LR effects; Granger Causality test in quantile (QGC); Frequency domain Granger causality (FDC) test (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:123778 Access Statistics for this paper More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC. |
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