The Impact of Financial Technology on per Capita Spending in Jordan

Abstract

The study aims to identify the impact of financial technology on per capita spending in Jordan spanning from 1991 to 2021. The dependent variable (financial technology) was measured by the following variables: the number of accounts, the number of automated teller machines, the number of credit cards, the number of money transfers, the imports, information and communication technology, the rate of imports of goods and services. The data collection was done through the financial data published by The Central Bank, and the data published by The World Bank. The study used the descriptive and statistical method. The regression equation was also used to analyze the data using the least squares method to test Full Modified Least Squares Cointegration (FMOLS). This is because this statistical method is used to estimate relationships between variables when there is a possibility of cointegration (long-run relationships) and between variables. The results of the analysis showed that financial technology has an impact on per capita spending; however, it is insignificant. The variables with statistical significance have a clear impact on the dependent variable, such as the number of money transfers, the rate of imports of technological goods of the total imports of goods, salaries, inflation, and per capita from the gross domestic product. Whereas, the other variables like the number of accounts, the number of automated teller machines, the number of credit cards, the number of internet users is not statistically significant, and doesn't have a great impact on the dependent variable. The study recommended creating job opportunities which would contribute to achieving economic growth, and increase expenditure, which in turn would reducing poverty rates, improving income distribution, raising the standard of living, reducing customs duties on the imports of the products of information and communication technology, which have a positive impact on the per capita in Jordan.