FINTECH AND MACROECONOMIC DYNAMICS: THEIR IMPACT ON GROWTH DURING ECONOMIC UNCERTAINTY

Abstract

This study examines the role of FinTech integration, financial leverage, investment and inflation in growth during economic disruption. The empirical framework employs a multiple regression model estimated using Ordinary Least Squares on a balanced panel dataset of 29 countries from 2016 to 2024, incorporating a dummy variable to capture crisis consequences. Fintech-driven solutions play an essential role in managing excessive debt and investment allocation under uncertainty. The findings show that financial leverage has a significant detrimental effect on economic growth distinctly from the favorable influence of investment alongside moderate inflation supporting macroeconomic stability. Digital finance enhances economic growth through financial inclusion and investment efficiency, fostering development. The severe contractionary impact of pandemic crisis is reflected by the dummy variable. Findings emphasize the importance of FinTech adoption in finance, investment and growth policy insights.