RESEARCH ARTICLE
The link between technological innovation and financial development: Evidence from selected OECD countries
Hamza Çeştepe,
Murat Çetin,
Pınar Avcı,
Bersu Bahtiyar,
Hamza Çeştepe
Faculty of Economics and Administrative Sciences, Department of Economics, Zonguldak Bulent Ecevit University, Zonguldak, Turkey
Search for more papers by this authorMurat Çetin
Faculty of Economics and Administrative Sciences, Department of Economics, Tekirdağ Namik Kemal University, Tekirdag, Turkey
Search for more papers by this authorCorresponding Author
Pınar Avcı
Marmara Ereğlisi Vocational School, Program of Marketing and Advertising, Tekirdağ Namik Kemal University, Tekirdag, Turkey
Correspondence
Pınar Avcı, Marmara Ereğlisi Vocational School, Program of Marketing and Advertising, Tekirdağ Namik Kemal University, Tekirdag, Turkey.
Email: [email protected]
Search for more papers by this authorBersu Bahtiyar
Faculty of Economics and Administrative Sciences, Department of Economics, Zonguldak Bulent Ecevit University, Zonguldak, Turkey
Search for more papers by this authorHamza Çeştepe,
Murat Çetin,
Pınar Avcı,
Bersu Bahtiyar,
Hamza Çeştepe
Faculty of Economics and Administrative Sciences, Department of Economics, Zonguldak Bulent Ecevit University, Zonguldak, Turkey
Search for more papers by this authorMurat Çetin
Faculty of Economics and Administrative Sciences, Department of Economics, Tekirdağ Namik Kemal University, Tekirdag, Turkey
Search for more papers by this authorCorresponding Author
Pınar Avcı
Marmara Ereğlisi Vocational School, Program of Marketing and Advertising, Tekirdağ Namik Kemal University, Tekirdag, Turkey
Correspondence
Pınar Avcı, Marmara Ereğlisi Vocational School, Program of Marketing and Advertising, Tekirdağ Namik Kemal University, Tekirdag, Turkey.
Email: [email protected]
Search for more papers by this authorBersu Bahtiyar
Faculty of Economics and Administrative Sciences, Department of Economics, Zonguldak Bulent Ecevit University, Zonguldak, Turkey
Search for more papers by this authorAbstract
Financial development is a main goal for developing and developed countries. Therefore, this study aims to investigate the impact of technological innovation on financial development over the period 1990–2018 for 21 OECD countries. The study integrates economic growth, natural resources and financial globalisation into the financial development equation as other explanatory variables. To estimate the long-run coefficients, the Driscoll-Kraay standard errors, panel corrected standard errors and feasible generalised least squares estimators are applied. The Dumitrescu-Hurlin bootstrap causality test is used to examine the causal linkages among the variables. It is found that there exists cointegration between the variables. It is also found that technological innovation, economic growth and financial globalisation positively affect financial development while natural resources decrease it in the long run. The findings reveal that technological innovation and financial development cause each other. The study will present some policy recommendations to accelerate financial sector development in OECD countries.
CONFLICT OF INTEREST
No potential conflict of interest was reported by the author(s).
Open Research
DATA AVAILABILITY STATEMENT
The data that support the findings of this study are available in the International Monetary Fund (IMF), International Financial Statistics (2021). https://data.imf.org/?sk=F8032E80-B36C-43B1-AC26-493C5B1CD33B, World Bank, World Development Indicators (2022) database at https://databank.worldbank.org/source/world-development-indicators and KOF Swiss Economic Institute (2022) database at https://kof.ethz.ch/en/forecasts-and-indicators/indicators/kof-globalisation-index.html.
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