The Interplay between Digitalization, Education and Financial Development: A European Case Study

Horobet, Alexandra; Mnohoghitnei, Irina; Zlatea, Emanuela Marinela Luminita; Belascu, Lucian

doi:10.3390/jrfm15030135

Open AccessArticle

The Interplay between Digitalization, Education and Financial Development: A European Case Study

by

Alexandra Horobet

^1,*

,

Irina Mnohoghitnei

^1,†,

Emanuela Marinela Luminita Zlatea

¹ and

Lucian Belascu

²

¹

Department of International Business and Economics, Bucharest University of Economic Studies, 010374 Bucharest, Romania

²

Department of Management, Marketing and Business Administration, “Lucian Blaga” University of Sibiu, 550324 Sibiu, Romania

^*

Author to whom correspondence should be addressed.

^†

The paper was produced when the author worked at the Bank of England. However, any views expressed in this paper are solely of the author’s and cannot be taken to represent those of the Bank of England or to state Bank of England policy. This paper should therefore not be reported as representing the views of the Bank of England.

J. Risk Financial Manag. 2022, 15(3), 135; https://doi.org/10.3390/jrfm15030135

Submission received: 15 December 2021 / Revised: 2 February 2022 / Accepted: 8 March 2022 / Published: 11 March 2022

(This article belongs to the Section Economics and Finance)

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Abstract

The paper explores the relationship between education, digitalization, and financial development between 1996 and 2019 with the aim of showcasing the differences between developed and emerging economies in Europe. We use a Bayesian VAR framework that includes variables related to education, digitalization, and financial development, as well as several endogenous variables to control for differences between countries in terms of nominal GDP growth, unemployment rate, and trade openness. Our findings clearly demonstrate the dynamic interdependence between financial development—including its two main components, financial institutions, and financial markets, digitalization, and education. Furthermore, we find that education is a leading variable in the financial development–education–digitalization nexus, whereas financial development and digitalization are laggard variables. These findings open possibilities for influencing joint policies on digitalization, education, and financial development, particularly in emerging European countries.

Keywords: financial development; financial institutions; financial markets; education; digitalization; dynamic interdependence; Bayesian VAR; impulse response

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MDPI and ACS Style

Horobet, A.; Mnohoghitnei, I.; Zlatea, E.M.L.; Belascu, L. The Interplay between Digitalization, Education and Financial Development: A European Case Study. J. Risk Financial Manag. 2022, 15, 135. https://doi.org/10.3390/jrfm15030135

AMA Style

Horobet A, Mnohoghitnei I, Zlatea EML, Belascu L. The Interplay between Digitalization, Education and Financial Development: A European Case Study. Journal of Risk and Financial Management. 2022; 15(3):135. https://doi.org/10.3390/jrfm15030135

Chicago/Turabian Style

Horobet, Alexandra, Irina Mnohoghitnei, Emanuela Marinela Luminita Zlatea, and Lucian Belascu. 2022. "The Interplay between Digitalization, Education and Financial Development: A European Case Study" Journal of Risk and Financial Management 15, no. 3: 135. https://doi.org/10.3390/jrfm15030135

APA Style

Horobet, A., Mnohoghitnei, I., Zlatea, E. M. L., & Belascu, L. (2022). The Interplay between Digitalization, Education and Financial Development: A European Case Study. Journal of Risk and Financial Management, 15(3), 135. https://doi.org/10.3390/jrfm15030135

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The Interplay between Digitalization, Education and Financial Development: A European Case Study

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