Exploring the Interplay of Broad Money Growth, Financial Expansion, and Digital Connectivity: Implications for Economic Growth Across Developed, Developing, and Emerging Economies Exploración de la interacción entre el crecimiento del dinero en sentido amplio, la expansión financiera y la conectividad digital: Implicaciones para el crecimiento económico en las economías desarrolladas, en desarrollo y emergentes

Abstract

This study examines the impact of broad money growth, financial inclusion, and digital connectivity on GDP growth in developed, developing, and emerging economies from 1994 to 2022. Using World Bank data and employing Jamovi for statistical analysis, the research applies descriptive statistics, correlation analysis, and regression analysis to uncover the relationships among these variables. The results show that broad money growth is positively correlated with GDP growth, with stronger effects in emerging markets compared to developed and developing economies. Financial inclusion, as measured by account ownership, and digital connectivity, as reflected in mobile phone subscriptions and internet usage, contribute significantly to economic growth, especially in less stable environments. This study differs from previous research by providing a comprehensive cross-country analysis that integrates financial inclusion and digital connectivity and examines their combined impact on economic growth. Unlike previous studies, which have often focused on a single region or variable, this research provides a holistic view of how financial inclusion and digital infrastructure interact in different economic contexts. It highlights the differential impact of these factors in different economic environments, providing nuanced insights into their collective influence on GDP growth. The findings underscore the critical importance of expanding financial services and improving digital infrastructure to promote economic development. Policy implications include prioritizing financial inclusion and digital connectivity to boost economic performance, especially in developing and emerging economies. Future research should examine sector-specific impacts and include additional variables such as political stability. This study contributes to the literature by offering a broader perspective on the interplay of financial and digital factors, providing new insights into their effects in different economic environments.