Digital Divide, Credit Financing and Financial Inclusion: Changing Patterns of Poverty, Employment and Income Inequalities

Abstract

The role and effectiveness of financial inclusion and information technology to protect the lower income groups has become an important area of concern after Covid-19. The main objective of this study is to examine the impacts of information technology on poverty, income inequality and unemployment. The study is based on 14 years data of 148 countries. The results are statistically significant and parameters are robust in different alternative scenarios. Empirical evidences confirm the effectiveness of the use of internet, mobile banking and credit flows by fintech and big technology companies for poverty alleviation, creation of employment and GDP growth.

Keywords

• Credit financing
• Fintech companies
• Gini-index
• Poverty headcount

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