Driving inclusive growth through financial systems and technology adoption: a global analysis of synergistic pathways using structural equation modeling

In an era of accelerating digital transformation and persistent global inequality, understanding how technology and financial systems contribute to inclusive growth is more urgent than ever. While financial development (FD) is widely recognized as a catalyst for economic expansion, its ability to promote equitable growth may increasingly depend on a country’s level of technology adoption. This study investigates the mediating role of ICT access in the relationship between FD and inclusive growth (IG), using cross-sectional data from 132 countries for the year 2022. Grounded in Endogenous Growth Theory and the Resource-Based View, the analysis employs Partial Least Squares Structural Equation Modeling (PLS-SEM) to test three key hypotheses. Results show that FD has a statistically significant positive effect on IG (β = 0.334, T = 5.820, p < 0.05), reinforcing the importance of robust financial institutions and access to credit in enabling broad-based development. ICT access also exerts a strong direct impact on IG (β = 0.888, T = 12.261, p < 0.01), confirming its role in enhancing productivity, market participation and service delivery. Most importantly, ICT access significantly mediates the FD–IG relationship (β = 0.096, T = 9.533, p < 0.01), amplifying the developmental returns of financial systems through improved inclusion and transactional efficiency. These findings underscore the need for integrated policy strategies that align financial sector reforms with digital infrastructure investment and digital literacy promotion. By harnessing the synergies between finance and technology, governments can build more inclusive, innovative and resilient economies in the digital age.