Digital transformation, financial openness and economic growth

Hana Berrayhane and Riadh El Ferktaji

MPRA Paper from University Library of Munich, Germany

Abstract: This study examines the combined impact of financial openness and digital transformation on economic growth, distinguishing between developed and emerging countries. Although these two factors have been widely studied separately, their interaction has not been explicitly addressed in existing literature. This study aims to fill this research gap by analyzing their joint effects on economic growth. Our study covers a sample of 37 countries, including 17 emerging and 20 developed economies, over the period 2010–2023. The main finding of this study highlights that the interaction between financial openness and digital transformation produces differentiated effects depending on the level of development. For emerging economies, the negative and statistically significant effect suggests that, without strong institutions or mature digital infrastructures, this interaction may exacerbate economic vulnerabilities. For developed countries, the absence of significance indicates that, despite a slight negative tendency, their robust systems help absorb the potential adverse effects of this interaction.

Keywords: Financial openness; Digital transformation and Economic growth. (search for similar items in EconPapers)
JEL-codes: F36 O43 O47 (search for similar items in EconPapers)
Date: 2026-01-09
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