Uncovering the Role of Digitalization and Financial Inclusion in Impacting the Trade Openness in OIC Countries
DOI:
https://doi.org/10.47067/ramss.v8i4.590Keywords:
Digitalization, Financial Inclusion, Trade Openness, OIC CountriesAbstract
This study examines how digitalization and financial inclusion affect trade openness in OIC countries with the data of 40 OIC countries between 2001 and 2022. The study used different panel data estimation approaches for data analysis including cross-sectional dependence test, slope homogeneity test, CIPS, IPS and LLC panel unit root tests, Pedroni, Kao and Westerlund cointegration tests, FMOLS and DOLS for long-run estimation and MMQR approach to measure heterogeneous effects. The outcome shows that financial inclusion, digitalization, industrialization and population are positively and significantly associated with trade openness in OIC nations. These findings suggest that digitalization and financial inclusion are playing imperative role in improving the trade in OIC countries. Therefore, it is suggested that policymakers should encourage and prioritize the adoption of digital technology across all industries. In addition to providing financial resources to promote new mechanisms for the growth of the digital economy, the government must demonstrate best practices in buying and applying digital technology tools.
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