Has FinTech reshaped global trade? : new empirical evidence from structural gravity model

Technological advancements in the financial sector are widely recognized as transformative for global trade and supply chains, significantly improving access to financial services while enhancing the security, efficiency, transparency, and flexibility of transactions between exporters and importers. In this context, the present study investigates the role of financial technology (fintech) in promoting international trade. Drawing on both theoretical and empirical frameworks that link trade and finance, the research explores how fintech innovations reduce trade costs and, in turn, enhance the gains from trade. By estimating a theory-consistent gravity model based on bilateral trade flows from 106 countries over the period 2014-2019, the study reveals that fintech innovations disproportionately stimulate international trade compared to domestic trade. These findings highlight the critical role of fintech in lowering trade barriers and suggest that policies promoting fintech development-such as those fostering innovation in blockchain, payment systems, and financial services-are essential to strengthening global trade competitiveness.