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Assessing the Role of Fintech as Moderator of Corporate Social Responsibility Expenditures in Driven Nigeria Economic Growth

Sulaiman Ahmad, Mohammed Ibrahim, Khalifa. M.M, PhD, Adamu Muawiyya Koko

Abstract

This study investigates the moderating role of innovation, specifically financial technology (Fin-Tech) IWT and NIBSS payment services, on the relationship between corporate social responsibility expenditures and Nigeria’s economic growth from 1990 to 2023. Anchored on the Endogenous Growth Theory and employing the Autoregressive Distributed Lag model, the research examines how the Nigeria Inter-Bank Settlement System and Internet/Web-based Transfers influence the effectiveness of CSR expenditures in promoting Nigeria’s GDP growth. Data obtained from the Central Bank of Nigeria, World Bank, and financial institutions' annual reports were analyzed using unit root tests, co-integration tests, and ARDL bounds testing. Empirical results revealed a significant long-run and short-run relationship between CSR expenditures, NIBSS, IWT, and economic growth. The inclusion of these Fin-Tech indicators notably enhanced the positive effect of CSR Expenditures on GDP growth in Nigeria. Diagnostic checks confirmed the model's adequacy, showing no issues of serial correlation or heteroscedasticity. The study concludes that financial innovations amplify the developmental impact of CSR expenditures and recommends deeper integration of Fin-Tech tools within CSR strategies to boost transparency, reach, and economic impact in Nigeria.

Keywords

NIBSSIWT TransactionsFinancial InstitutionsCSR Expenditures and GDP

References

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