Re-Visiting the Co-movement between FinTech, Economic Policy Uncertainty, Governance Quality and Bank Variability in Pakistan: A Wavelet Coherence Approach

The recent literature about FinTech services in Pakistani commercial banks has grabbed much attention as these services have increased rapidly in the last few decades. This paper examines the co-movement between FinTech, economic policy uncertainty, bank- variability, and governance quality. The data was obtained from 2014-2020 on a monthly frequency. To address the relationship and co-movement, we have applied more advanced and sophisticated econometric models, autoregressive distributed lag model (ARDL), and continuous wavelet (CTW) to investigate the relationship between the variables. These approaches provide flexibility of assumptions for time-series data and provide robust results. The results indicate a short and long-run symmetric relationship with a significant co-movement between the variables.