The Impact of Digital Transformation in the Financial Sector on Economic Growth in Iraq

The research aimed to explore and measure how digital transformation in the financial sector affects economic growth in Iraq, which is assumed that emerging financial technologies have a pivotal role in influencing the economic landscape as a whole and economic growth in particular, where indicators that reflect digital transformation in the financial sector were used, including the values of transfers through the real-time gross settlement system, the values of the electronic checks clearing system, and the number of ATMs during the research period as independent variables, while the gross domestic product was relied upon as a dependent variable reflecting economic growth. The research used a number of 14 observations that were converted to quarterly in the standard aspect, because these indicators are newly restricted as they began to be used in early 2011. The (ARDL) model was used, and the most important results indicated the existence of long-term joint integration relationships between the research variables, but these relationships are characterized by weakness and their lack of effective contribution to the development and contribution to economic growth. The research recommends the necessity of investing in digital infrastructure and using technology effectively in the financial sector to support economic growth.