Fostering Technological Development During Financial Crisis

In an effort to prevent the collapse of financial institutions and mitigate the effects of the credit crunch on the economy, governments everywhere have reacted to the global financial crisis with great swiftness.Innovations in information technology played a noteworthy role in driving advancements during the 2007-08 financial crisis and the 2019 COVID-19 pandemic.These technological advances were observed to enhance productivity, enable more effective risk diversification, and generate economies of scale.This study evaluates the progress of technology during financial crises in specific countries.The research relies on secondary data spanning fifteen years (2007)(2008)(2009)(2010)(2011)(2012)(2013)(2014)(2015)(2016)(2017)(2018)(2019)(2020)(2021), encompassing two major events that precipitated financial crises: the 2008 financial crisis and the 2019 COVID-19 pandemic.Regression analysis reveals that the application and development of technology have a negative effect on economic growth during global financial crises because of the financial difficulties in the fields of big data, machine learning, artificial intelligence, banking, healthcare, and mobile and mobile technology (IoT).Financial crises bring about significant market uncertainty and reduced consumer and business confidence.In such environments, new technologies may not be adopted as quickly or as widely as they would be in stable economic conditions, limiting their potential to drive economic growth.