Financial Technologies and Economic Resilience from COVID-19

75 Pages Posted: 20 Mar 2023 Last revised: 5 Apr 2023

See all articles by Cen Cai

Cen Cai

Shanghai University of Finance and Economics

Xin Chang

Nanyang Business School, Nanyang Technological University

Xin Deng

Nanyang Technological University

Yu He

China University of Geosciences, Beijing

Jiaxin Peng

Capital University of Economics and Business

Zhuozhen Peng

Nanyang Business School, Nanyang Technological University

Date Written: March 19, 2023

Abstract

We examine the relation between financial technologies (Fintech) and countries’ economic resilience from COVID-19 around the world. Measuring the demand for Fintech services using Google search volumes of high-frequent Fintech-related phrases, we document that developing countries and those with underdeveloped Fintech industry exhibit more significant Fintech demand surges during the pandemic. Moreover, stronger Fintech is positively associated with GDP growth and negatively related to unemployment rates. We develop a comprehensive economic resilience measure to capture both the speed and strength of economic resistance and recovery in response to the pandemic shock. Our analysis reveals that Fintech can serve as an essential enabler and accelerator of economic growth, contributing to economic stability and resilience from the global health crisis.

Keywords: Fintech, COVID-19 Pandemic, Economic Growth, Unemployment Rate, Google Search Volume

Suggested Citation

Cai, Cen and Chang, Xin and Deng, Xin and He, Yu and Peng, Jiaxin and Peng, Zhuozhen, Financial Technologies and Economic Resilience from COVID-19 (March 19, 2023). Nanyang Business School Research Paper No. 23-07, Available at SSRN: https://ssrn.com/abstract=4392974 or http://dx.doi.org/10.2139/ssrn.4392974

Cen Cai

Shanghai University of Finance and Economics ( email )

Shanghai
China

Xin Chang (Contact Author)

Nanyang Business School, Nanyang Technological University ( email )

Singapore, 639798
Singapore

HOME PAGE: https://personal.ntu.edu.sg/changxin/

Xin Deng

Nanyang Technological University ( email )

S3 B2-A28 Nanyang Avenue
Singapore, 639798
Singapore

Yu He

China University of Geosciences, Beijing ( email )

NO. 29, Xueyuan Road, Haidiao District
Beijing, 100083
China

Jiaxin Peng

Capital University of Economics and Business ( email )

Beijing
China

Zhuozhen Peng

Nanyang Business School, Nanyang Technological University ( email )

Singapore, 639798
Singapore

HOME PAGE: http://www.zhuozhen-peng.com/

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