Journal of Global Economics

Does the Availability of Banking Services Matter in the Context of Digitization in Ensuring Economic Growth? Data from Countries in Central and Eastern Europe

Abstract

Danile Armeanu*

In the context of the digitalization process, the aim of this article is to investigate the relationship between financial (banking) accessibility and economic growth. As a result, we developed a panel model to assess the relationships between banking accessibility and economic growth for the Central and Eastern European Countries between. Additionally, using eight independent variables to gauge the degree of banking accessibility and the dependent variable for economic growth, we used the Fully Modified Ordinary Least Squares approach. The findings demonstrate that expanding banking services does not always promote economic growth whereas increasing financial accessibility has a favourable impact on economic growth. The findings in the context of digitization are pertinent for policymakers underlining the importance of investing more in digitization