This study examines the relationship between digitization and financial development in emerging Asian economies, factoring in human capital, institutional quality, economic growth and globalization. Using panel Generalized Method of Moments, dynamic least squares and panel-corrected standard errors, results reveal that digitization, institutional quality and economic growth positively impact financial development, while human capital and globalization have negative effects. Recommendations include advancing digital financial infrastructure, improving institutional quality, supporting economic growth through entrepreneurship and enhancing infrastructure. Country-specific strategies address challenges such as financial inclusion and cybersecurity. By adopting these policies, emerging Asian economies can build a resilient, inclusive financial system and drive economic prosperity.
Pal et al. (Thu,) studied this question.