Technology and financial development: Evidence from Liberia

Today, researchers and policymakers want to understand how or to what extent does technology influence financial transactions. There is a need to understand how technology, specifically in the form of mobile money and internet access, has affected economic expansion and financial inclusion in the country. The ultimate objective of this thesis is to assess the relationship between technology and financial development in Liberia using time series data from 1991 to 2021. ARDL model and bound tests were used to examine the relationship between technology and financial development. Technology is measured using Mobile Cellular Subscriptions and Internet Penetration while financial development is measured using Net Domestic Credit and Money Supply). From the empirical results, the findings indicate that there exists a negative and positive significant relationship between technology and financial development in Liberia using money supply and net domestic credit as a financial indicator in both short term and long-term. Ultimately, this study highlights the importance of incorporating technology to maximize financial activities that to sustainable, efficient, and effective financial system. This reveals that government should ensure and encourage a safe environment that improve financial activities in Liberia through the incorporation of technology.