## Is Schumpeter Right? Fintech and Economic Growth

_IMF Working Papers, February 2, 2024_

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## Bibliographic details
- Authors: Serhan Cevik
- Published: February 2, 2024
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9798400266324.001

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### Research question and approach
- Objective: Investigate the relationship between fintech and economic growth.
- Data and scope:
  - Panel of 198 countries over the period 2012–2020.
  - Novel dataset with direct measures of fintech.
  - Dynamic modelling used to address potential endogeneity.
- Author and publication:
  - By Serhan Cevik; February 2, 2024.
  - IMF Working Papers, Working Paper No. 2024/020, Issue 020, Volume 2024, Pages: 15.
  - DOI: https://doi.org/10.5089/9798400266324.001
  - Stock No: WPIEA2024020; ISBN: 9798400266324; ISSN: 1018-5941.

### Key empirical findings
- Fintech effects vary by instrument type:
  - Digital lending has a statistically significant positive effect on real GDP per capita growth.
  - Digital capital raising has a large but insignificant effect on real GDP per capita growth.
- Aggregate impact:
  - The overall impact of fintech (including all instruments) is positive and statistically significant because of the overwhelming share of digital lending in total.
- Heterogeneity across country groups:
  - The positive relationship between fintech and growth is stronger in magnitude in advanced economies.
  - The statistical significance of the fintech–growth effect is higher in developing countries.
- Interpretation:
  - Results are consistent with Schumpeter’s prediction that financial innovation can promote growth, but not every type of fintech acts as an accelerator.

### Subjects and keywords
- Subject areas: Digital financial services, Financial markets, Financial sector development, Fintech, Gross fixed investment, National accounts, Technology.
- Keywords: capital raising, Digital financial services, Financial sector development, Fintech, fixed capital capital formation, Global, Gross fixed investment, impact magnitude, novel dataset, statistical significance.

*Content based on "Is Schumpeter Right? Fintech and Economic Growth", Serhan Cevik, IMF Working Papers 2024/020 (February 2, 2024).*

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_Source: https://www.imf.org/en/publications/wp/issues/2024/02/02/is-schumpeter-right-fintech-and-economic-growth-544390_