This study rigorously investigates the non-monotonic phenomenon of the government spending–growth nexus in the EECA. Using panel data from 19 countries over the period 1995–2019, a nonlinear quadratic estimator and cubic nonlinear estimator were applied to quantile regressions. The preliminary findings revealed a negative linear nexus of government spending and economic growth using a linear model, while the nonlinear models (i.e., quadratic and cubic nonlinear estimators) indicated evidence of nonlinearity in the nexus in the EECA over the study period. Furthermore, the study found strong evidence of the existence of an inverted “N-shaped” (nonlinear cubic) nexus between government spending and growth, which can be interpreted as the typical credit-driven boom-and-bust cycle in most EECA countries. Finally, in elucidating the nexus between government spending and economic growth, the study found that most macroeconomic and governance variables are relaxing in explaining GS.

Purpose: The research aims to achieve three goals. First, it examines the effect of FinTech on income inequality in SSA. Second, it assesses the effect of financial inclusion on income inequality in SSA. Lastly, it analyzes whether FinTech enhances the effectiveness of financial inclusion in reducing income inequality in SSA. Design/methodology/approach: The study adopts robust econometric techniques such as the traditional ordinary least square (OLS) estimation technique, the two-step system GMM, the Driscoll–Kraay covariance matrix estimator and the PVAR Granger causality model. The two-step GMM helps us to address endogeneity and simultaneity issues and small sample bias inherent in dynamic panel models. Similarly, the Driscoll–Kraay covariance matrix estimator addresses panel data’s potential cross-sectional, temporal and spatial dependence. Findings: The study finds that FinTech does not directly engender a reduction in income inequality. Similarly, the study shows that financial inclusion may not directly facilitate a reduction in income inequality. However, we find that FinTech pushes financial inclusion to engender a reduction in income inequality in SSA. Further, the results show that FinTech Granger causes financial inclusion in SSA. Lastly, we find that technology infrastructure (captured by mobile cellular subscription and the share of the population with internet access) and the level of education (proxied by mean years of schooling) are important channels through which FinTech pushes financial inclusion to reduce income inequality. The research and policy implications are discussed. Originality/value: The study investigated the efficacy of FinTech in deepening financial inclusion and reducing income inequality in SSA.

This research explored the relationship between financial development and economic growth in the MENA region from 1996 to 2022. Using panel data, it assessed whether financial institutions and financial markets had differing impacts on economic growth. Various statistical methods, including OLS, GMM, quantile, and U-tests, were employed to analyze this correlation. Our findings revealed a nonlinear relationship between financial development (institutions and markets) and economic growth, characterized by an inverted U-shaped curve. This relationship was influenced by the MENA region’s limited financial regulations and the “vanishing effect”. Financial institutions were found to have an insignificant impact on economic growth but played a role in constraining it. Conversely, financial markets significantly contributed to growth initially, but this effect diminished over time, eventually turning negative. Additionally, this research highlighted the positive influences of liquidity and exports on economic growth, while noting that the rule of law and political stability had adverse effects.