Patterns and drivers of financial sector growth in the digital age: Insights from a study of industrialized economies

K. Vu and Simplice Asongu

Research in International Business and Finance, 2023, vol. 66, issue C

Abstract: The financial sector in advanced economies has undergone significant evolution driven by restructuring, globalization, and the digital revolution, which have profoundly shaped its developmental dynamics. This study investigates the forces behind the growth and convergence of the financial sector across 13 advanced economies from 2000 to 2015, focusing on the effects of digital transformation. The investigation unveils several noteworthy findings concerning the financial sector. First, most nations experienced substantial growth in value-added, coupled with a significant decrease in employment and robust advancements in labor productivity. Next, the primary drivers of labor productivity growth and convergence across many economies were driven by total factor productivity, labor quality, and digital transformation. Lastly, digital transformation not only directly contributed to the augmentation of labor productivity, as quantified through growth accounting estimation, but also wielded a considerable impact on the expansion of total factor productivity and the streamlining of the workforce.

Keywords: Financial sector; Productivity; Digital transformation; Innovation; Catchup; Industrialized economies (search for similar items in EconPapers)
JEL-codes: O16 O30 O40 O57 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Related works:
Working Paper: Patterns and Drivers of Financial Sector Growth in the Digital Age: Insights from a Study of Industrialized Economies (2023)
Working Paper: Patterns and Drivers of Financial Sector Growth in the Digital Age: Insights from a Study of Industrialized Economies (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:66:y:2023:i:c:s0275531923002015

DOI: 10.1016/j.ribaf.2023.102075

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