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Financial openness and fintech credit

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  • Rapih, Subroto
  • Susantiningrum,
  • Wahyono, Budi
  • Borges, Jorge Tavares
  • Phongsounthone, Somesanook

Abstract

This study explores the link between fintech credit and de facto measures of financial openness, which has been largely overlooked in the existing literature. We utilise a new and comprehensive panel dataset consisting of a direct measure of fintech credit, allowing us to conduct a cross-country analysis of more than 78 countries between 2013 and 2019. Using a series of panel data estimation models, we provide robust evidence that an increase in all main components of total external liabilities leads to an increase in fintech credit volumes. Based on the empirical results, we highlight that each external liability component affects fintech credit volumes through certain channels and mechanisms.

Suggested Citation

  • Rapih, Subroto & Susantiningrum, & Wahyono, Budi & Borges, Jorge Tavares & Phongsounthone, Somesanook, 2023. "Financial openness and fintech credit," Finance Research Letters, Elsevier, vol. 56(C).
    • Handle: RePEc:eee:finlet:v:56:y:2023:i:c:s1544612323005068
    DOI: 10.1016/j.frl.2023.104134
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    More about this item

    Keywords

    Fintech; Financial openness; External liabilities; Financial innovation;
    All these keywords.

    JEL classification:

    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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