Article
FinTech and Sustainable Growth in Emerging Economies: The Mediating Role of Digital Financial Inclusion and the Moderating Effect of Regulatory Quality
This study examines the role of financial technology (FinTech) in promoting sustainable growth in emerging economies, with a particular focus on the mediating role of digital financial inclusion and the moderating effect of regulatory quality. Grounded in Inclusive Growth Theory and Innovation Diffusion Theory, the study addresses a critical gap in the literature by linking digital finance with sustainability outcomes. Using a balanced panel dataset of 20 emerging economies over the period 2015 - 2025, the study employs a panel econometric framework, including Fixed Effects and Random Effects models. The Hausman test supports the use of the Fixed Effects model, and robustness is ensured through diagnostic tests for multicollinearity, heteroskedasticity, and autocorrelation. The results indicate that FinTech development significantly enhances sustainable growth, both directly and indirectly through financial inclusion, which acts as a key transmission channel. Furthermore, regulatory quality strengthens this relationship, while CO₂ emissions exert a negative impact on sustainability outcomes. The findings highlight the importance of digital financial systems and institutional quality in achieving inclusive and environmentally sustainable development. From a policy perspective, governments should strengthen digital financial infrastructure, promote inclusive financial ecosystems, and enhance regulatory frameworks to maximize the sustainability benefits of FinTech.