Global perspective of the effects of digital financial inclusion and ICT intensity on socio-economic development

Abstract

Although digital financial inclusion (DFI) has recently received scholarly attention, large sections of these studies focused on the impacts, drivers, inhibiting factors, and firms, single and cross-countries. This study combines the partial least square structural equation modelling (PLS-SEM) and necessary condition analysis (NCA), a conceptual framework, and a global dataset to investigate the effects of DFI and the mediating role of ICT intensity on socio-economic development. The results show that ICT intensity and DFI positively influence socio-economic development and are necessary conditions. We also found that ICT regulation does not mediate the nexus between DFI, ICT intensity, and socio-economic development. The findings of this study offer global insights into the discourse and highlight theoretically the critical success factors in ICT4D (ICT for development) initiatives. It also provides insights on the level of ICT-based factors necessary for a country's socio-economic development while making better use of its limited resources.