The role of globalization and financial technology on economic growth: panel quantile evidence from G7 (2004–2024)

Abstract Technology, finance, and energy are the key drivers to sustained growth and enhanced living standards in economies. This research adopts a framework that is built around the innovation-driven growth, finance-led growth, and energy-leg growth hypotheses to capture the various financial and technological mechanisms, and energy resources that drives economic growth. Therefore, the analysis of this study advances literature by examining the influence of financial technology, financial development, and research & development on the economic performance of the G7 economies, taking into consideration the period from 2004 to 2024. The contemporary ‘Methods of Moments Quantile Regression’ and the ‘Panel Correlation Standard Errors’ techniques are employed for data analysis. Key findings depict that financial technology, research & development, and globalization symmetrically improves the economic growth of the G7 economies. These findings supports the innovation-driven growth hypothesis, endogenous growth model, and finance-led growth hypothesis in showing the importance of technological innovations, finance and globalization trends in supporting economic growth. Alternatively, the findings are consistent in showing that renewable energy; capital growth rate and financial development are insignificant in supporting economic growth in the G7 economies. Policy implications suggest promoting the advancement in financial technology tools, adoption of globalization trends, and research & development in stimulating economic performance of nations.