CAREC Institute Releases Visiting Fellows Research on Digital Financial Services and Inclusive Growth

The CAREC Institute has released a new research report under its 2025 Visiting Fellows Program. Titled Digital Financial Services and Inclusive Growth: Evidence from Selected CAREC Countries, the report is authored by Dr. Zahoor Khan. Covering the 2014–2024 period, the study explores how digital financial services (DFS) correlate with and affect inclusive growth (IG) across selected CAREC member countries.

The research builds composite indices to measure digital financial services and inclusive growth. Using empirical evidence from CAREC economies, it examines how advances in digital finance support broader regional economic development.

The report assesses regional digital finance performance across four key areas: digital infrastructure, DFS adoption, internet affordability and bandwidth capacity. It also evaluates inclusive growth through four core pillars, including social inclusion, human development, economic prosperity and climate resilience, all of which serve major regional development goals.

Empirical results show that digital financial services steadily boost regional inclusive growth. Notably, less developed economies gain the most from digital finance investment, with the highest marginal improvement returns.

By comparing development gaps among member countries, the report demonstrates that digital finance is a key tool for balanced regional growth. It offers practical policy implications for upgrading digital infrastructure and expanding inclusive financial access, enabling tailored resource distribution across the region.