The Interaction Model of Digitalization and Financial Inclusion: A Bayesian Analysis of Its Role in Economic Growth

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DOI: https://doi.org/10.28924/2291-8639-23-2025-4
Published: Jan 2, 2025
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Ngoc Toan Bui, The Interaction Model of Digitalization and Financial Inclusion: A Bayesian Analysis of Its Role in Economic Growth, Int. J. Anal. Appl., 23 (2025), 4.

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Ngoc Toan Bui

Abstract

This study aims to analyze the impact of digitalization and financial inclusion on economic growth in the ASEAN-6 countries, with a particular highlight on the interaction between these two factors. This research topic is compelling, as most previous studies have examined the individual effect of either digitalization or financial inclusion on economic growth, lacking empirical evidence on their interactive impact. The author utilizes a Bayesian approach to estimate the research model, providing a clearer understanding of the extent and probability of each variable's effect. The findings reveal that economic growth in the ASEAN-6 countries is positively influenced not only by digitalization and financial inclusion individually but also by their significant interaction. Additionally, economic growth is notably affected by population growth and inflation. These findings offer a reliable foundation for the ASEAN-6 countries to identify appropriate policies that foster digitalization coupled with financial inclusion, thereby promoting economic growth.

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