Assessing the Dynamics of Fintech and Financial Inclusion in Reducing Inequality in Malaysia: a Bayesian-Wavelet approach
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Abstract
This paper examines the impact of FinTech on financial inclusion and inequality reduction in Malaysia within the framework of SDG 10. Using a Bayesian VAR model and wavelet coherence analysis (2004–2022), the study analyzes dynamic links between FinTech, inclusion, inequality, and growth. A FinTech Adoption Index (PCA) and a novel Financial Inclusion Index are constructed. Results reveal bidirectional causality, with FinTech and inclusion jointly reducing disparities and fostering inclusive growth. Policy implications highlight the need for inclusive ecosystems, literacy programs, and adaptive regulation.
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This work is licensed under a Creative Commons Attribution 4.0 International License.
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