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An Officious Impact of Financial Innovations and ICT on Economic Evolution in China: Revealing the Substantial Role of BRI

Author

Listed:
  • Khurram Shehzad

    (School of Economics and Management, Southeast University, Nanjing 210096, China)

  • Umer Zaman

    (Endicott College of International Studies, Woosong University, Daejeon 34606, Korea)

  • Ana Ercília José

    (Department of Economic Sciences and Organizations, Polytechnic Institute of Portalegre, 7300-555 Portalegre, Portugal)

  • Emrah Koçak

    (Faculty of Economics and Administrative Sciences, Erciyes University, Kayseri 38010, Turkey)

  • Paulo Ferreira

    (Department of Economic Sciences and Organizations, Polytechnic Institute of Portalegre, 7300-555 Portalegre, Portugal
    VALORIZA—Research Center for Endogenous Resource Valorization, 7300-555 Portalegre, Portugal
    CEFAGE-UE, IIFA, University of Évora, 7000-809 Évora, Portugal)

Abstract
The Belt and Road Initiative removes regional barriers and brings communities closer together. In addition, ICT and financial innovation have helped transform the world into a big village and promoted economic growth. The study assessed the dynamic impact of ICT, economic globalization, and financial innovation on China’s economic growth. The study used quarterly data from 2000 to 2019 and used the ARDL model to determine long-term and short-term consequences. The results of the study show that ICT has a positive affiliation with economic growth in China. In addition, financial innovation has also shown a direct impact on economic growth. The study shows that China’s One Belt One Road project (economic globalization) has a great positive impact on its GDP. The consequences of the causality test discovered the significant unidirectional causality running from ICT and economic globalization (ECGI) to GDP. The study recommends mandatory policies related to ICT, financial innovation, and economic globalization to achieve long-term and sustainable development in China.

Suggested Citation

  • Khurram Shehzad & Umer Zaman & Ana Ercília José & Emrah Koçak & Paulo Ferreira, 2021. "An Officious Impact of Financial Innovations and ICT on Economic Evolution in China: Revealing the Substantial Role of BRI," Sustainability, MDPI, vol. 13(16), pages 1-17, August.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:16:p:8962-:d:612039
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