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Techno-financial Synergy: Exploring the Impact of Tech Innovations on Financial Development Across OECD Countries

Author

Listed:
  • Moustapha Badran
  • Joanna Darwiche
  • Mohamed Awada
  • Whelsy Boungou

    (Montpellier Research in Economics (MRE), Faculty of Economics, University of Montpellier, France)

Abstract

This study investigates how technological innovations—R&D expenditures, internet penetration, and mobile network expansion—affect financial development in 21 OECD countries from 1996 to 2021. We assess both the direct impact of innovation and the influence of macroeconomic factors such as economic growth, trade openness, and financial globalisation. Empirical results show that all three technological dimensions positively drive financial development, while economic growth and financial globalisation also enhance it, and trade openness has a negative effect over time. Causality analysis indicates bidirectional links between financial development and technological innovations, and between economic growth and trade openness, with a unidirectional effect from financial globalisation. These findings suggest that policymakers should promote technological infrastructure, support macroeconomic stability, and design integrated strategies to strengthen financial systems and foster long-term economic resilience in OECD countries.

Suggested Citation

  • Moustapha Badran & Joanna Darwiche & Mohamed Awada & Whelsy Boungou, 2026. "Techno-financial Synergy: Exploring the Impact of Tech Innovations on Financial Development Across OECD Countries," Review of Development Finance Journal, Chartered Institute of Development Finance, vol. 16(1), pages 20-41.
    • Handle: RePEc:afj:journ3:v:16:y:2026:i:1:p:20-41
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    File URL: https://journals.co.za/doi/abs/10.10520/ejc-rdfin_v16_n1_a2
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    Keywords

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    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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