Global technology innovation: comparison of new broad-based index of financial development of Europe and Asia
Abstract Financial development plays a vital role in fostering economic growth, influencing financial institutions, markets, technological innovation, and gross domestic product (GDP). While prior research has extensively examined this relationship, traditional metrics such as the ratio of private c...
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| Format: | Article |
| Language: | English |
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SpringerOpen
2025-05-01
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| Series: | Future Business Journal |
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| Online Access: | https://doi.org/10.1186/s43093-025-00547-1 |
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| author | Fakhrullah Sher Khan Xiao DingDing Marian Suplata |
| author_facet | Fakhrullah Sher Khan Xiao DingDing Marian Suplata |
| author_sort | Fakhrullah |
| collection | DOAJ |
| description | Abstract Financial development plays a vital role in fostering economic growth, influencing financial institutions, markets, technological innovation, and gross domestic product (GDP). While prior research has extensively examined this relationship, traditional metrics such as the ratio of private credit to GDP and stock market capitalization to GDP fail to capture the multidimensional nature of financial development. To address this limitation, this study introduces nine comprehensive measures encompassing financial depth, access, and efficiency across financial institutions and markets. Using a dataset spanning 2019–2022, this study evaluates financial development indicators for countries listed from A to L in the International Monetary Fund database. The findings reveal a robust positive correlation between financial development and technological innovation, suggesting that enhanced financial infrastructure facilitates technological advancements. Moreover, the results indicate a significant positive relationship between technological innovation and GDP, reinforcing the argument that innovation serves as a catalyst for economic expansion. These findings underscore the critical role of financial development in not only promoting innovation but also in stimulating economic growth. The study carries important implications for policymakers, emphasizing the necessity of financial sector reforms to enhance financial access, depth, and efficiency. By fostering a more developed financial system, nations can stimulate technological progress and, consequently, economic growth. The inclusion of nine financial development measures provides a more holistic evaluation compared to traditional metrics, offering deeper insights into the dynamics of financial systems. In conclusion, this study contributes to the literature by presenting a more nuanced understanding of financial development’s impact on technological innovation and GDP, highlighting its essential role in shaping sustainable economic growth. Graphical abstract |
| format | Article |
| id | doaj-art-dea16af0c9d443ef86b305bcef3df45e |
| institution | DOAJ |
| issn | 2314-7210 |
| language | English |
| publishDate | 2025-05-01 |
| publisher | SpringerOpen |
| record_format | Article |
| series | Future Business Journal |
| spelling | doaj-art-dea16af0c9d443ef86b305bcef3df45e2025-08-20T03:16:47ZengSpringerOpenFuture Business Journal2314-72102025-05-0111112110.1186/s43093-025-00547-1Global technology innovation: comparison of new broad-based index of financial development of Europe and AsiaFakhrullah0Sher Khan1Xiao DingDing2Marian Suplata3Business School, Shandong Normal UniversityDepartment of International Management, Faculty of Management, Comenius University BratislavaBusiness School Shandong Normal UniversityDepartment of International Management, Faculty of Management, Comenius University BratislavaAbstract Financial development plays a vital role in fostering economic growth, influencing financial institutions, markets, technological innovation, and gross domestic product (GDP). While prior research has extensively examined this relationship, traditional metrics such as the ratio of private credit to GDP and stock market capitalization to GDP fail to capture the multidimensional nature of financial development. To address this limitation, this study introduces nine comprehensive measures encompassing financial depth, access, and efficiency across financial institutions and markets. Using a dataset spanning 2019–2022, this study evaluates financial development indicators for countries listed from A to L in the International Monetary Fund database. The findings reveal a robust positive correlation between financial development and technological innovation, suggesting that enhanced financial infrastructure facilitates technological advancements. Moreover, the results indicate a significant positive relationship between technological innovation and GDP, reinforcing the argument that innovation serves as a catalyst for economic expansion. These findings underscore the critical role of financial development in not only promoting innovation but also in stimulating economic growth. The study carries important implications for policymakers, emphasizing the necessity of financial sector reforms to enhance financial access, depth, and efficiency. By fostering a more developed financial system, nations can stimulate technological progress and, consequently, economic growth. The inclusion of nine financial development measures provides a more holistic evaluation compared to traditional metrics, offering deeper insights into the dynamics of financial systems. In conclusion, this study contributes to the literature by presenting a more nuanced understanding of financial development’s impact on technological innovation and GDP, highlighting its essential role in shaping sustainable economic growth. Graphical abstracthttps://doi.org/10.1186/s43093-025-00547-1Financial developmentFinancial marketFinancial institutionDepthAccessEfficiency |
| spellingShingle | Fakhrullah Sher Khan Xiao DingDing Marian Suplata Global technology innovation: comparison of new broad-based index of financial development of Europe and Asia Future Business Journal Financial development Financial market Financial institution Depth Access Efficiency |
| title | Global technology innovation: comparison of new broad-based index of financial development of Europe and Asia |
| title_full | Global technology innovation: comparison of new broad-based index of financial development of Europe and Asia |
| title_fullStr | Global technology innovation: comparison of new broad-based index of financial development of Europe and Asia |
| title_full_unstemmed | Global technology innovation: comparison of new broad-based index of financial development of Europe and Asia |
| title_short | Global technology innovation: comparison of new broad-based index of financial development of Europe and Asia |
| title_sort | global technology innovation comparison of new broad based index of financial development of europe and asia |
| topic | Financial development Financial market Financial institution Depth Access Efficiency |
| url | https://doi.org/10.1186/s43093-025-00547-1 |
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