The Impact of ICT on Financial Development: An Empirical Evidence from Syria

12 Pages Posted: 27 Apr 2021

See all articles by Ibrahim Alnafrah

Ibrahim Alnafrah

affiliation not provided to SSRN

Rama Sultan

affiliation not provided to SSRN

Roua Aldoumani

affiliation not provided to SSRN

Sulaiman Mouselli

Arab International University

Date Written: April 11, 2021

Abstract

The digital revolution affects all economic aspects and the financial sector is not an exception. Despite the wide evidence on the impact of Information, Communication, and Technology (ICT) on the financial sector development, this topic has yet to be researched in Syria. We investigate the impact of five proxies of ICT on financial development using multiple regression model for the period 2005 to 2017. We also conduct marginal effect analysis to identify the impact of penetration of mobile phones on the financial development with war and without it. We find that there is a significant positive impact of the number of mobile subscribers on the financial development index in Syria. This result is consistent with Alshubiri et al. (2019) who find that an increase in fixed broadband has a statistically significant and positive effect on financial development in GCC countries. However, the number of telephone subscribers has insignificant impact on the Syrian financial development. The war seems to have a significant negative impact on the financial development in Syria. In addition, we find that the marginal effect of mobile subscription on the financial development index without war is larger compared to the case with war. We conclude that digital transformation has great potentials for advancing the Syrian financial sector especially if accompanied with more investment in ICT infrastructure.

Keywords: ICT, Financial Development, Mobile Phones, Syria, War

JEL Classification: G20, G21

Suggested Citation

Alnafrah, Ibrahim and Sultan, Rama and Aldoumani, Roua and Mouselli, Sulaiman, The Impact of ICT on Financial Development: An Empirical Evidence from Syria (April 11, 2021). Available at SSRN: https://ssrn.com/abstract=3827558 or http://dx.doi.org/10.2139/ssrn.3827558

Ibrahim Alnafrah

affiliation not provided to SSRN

Rama Sultan

affiliation not provided to SSRN

Roua Aldoumani

affiliation not provided to SSRN

Sulaiman Mouselli (Contact Author)

Arab International University ( email )

Daraa
Syria

HOME PAGE: http://www.aiu.edu.sy

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
65
Abstract Views
245
rank
428,653
PlumX Metrics