The Nexus Among Fintech, Green Finance, and Sustainable Economic Development: Evidence from Developing Countries

Abstract

The nexus among green finance, sustainable economic development, and Fintech adoption in developing countries is investigated in this study. Using data of 25 developing countries from 2003 to 2022, the study applies fixed-effect panel regression to investigate the methods in which Fintech and green finance interact and support sustainable development. Based on the results, there is a complicated connection between green finance initiatives and Fintech adoption. Green finance initiatives promote sustainable investments and promote economic growth that is in line with social and infrastructural objectives. These findings emphasize the importance it is to incorporate green financing into financial systems in order to meet the objectives of sustainable development. The report additionally highlights the necessity of extensive regulatory frameworks that guarantee responsibility for the environment while addressing the difficulties related to Fintech adoption. These findings can be applied by financial institutions and policymakers to develop policies that promote sustainable economic practices and inclusive, tech-driven financial systems. Despite its merits, this study admits its shortcomings, especially regional variability and data availability, which create possibilities for additional study. All things thought out, this work contributes to the scholarly discussion on Fintech and green finance and offers valuable guidance for advancing sustainable economic development in developing countries.