The Impact of International Economic Sanctions on the Use of Financial Technologies
Author:
Alnaimat Mohammad Ahmad1, Rudyk Nataliia2, Al-Naimi Ahmad A.3, Panchenko Anna4, Turski Igor5
Affiliation:
1. Department of Accounting, Faculty of Business, Alzaytoonah University of Jordan, 594 St., Airport Rd., Amman JORDAN 2. Department of Finance named after Victor Fedosov, Faculty of Finance, State Higher Educational, Institution Kyiv National Economic University named after Vadym Hetman, 54/1 Peremogy Av., 03057, Kyiv, UKRAINE 3. Department of Finance and Banking Sciences, Faculty of Business, Applied Science Private University, 21 Al-Arab St., Amman, JORDAN 4. Department of Business Economics and Investment, Institute of Economics and Management, Lviv, Polytechnic National University, 12 Bandera Str., 79013, Lviv UKRAINE 5. Department of Tourism, Hotel and Restaurant Business, Lutsk National Technical University, 75 Lvivska Str., 43018, Lutsk, UKRAINE
Abstract
The aim of this study was to elaborate a conceptual approach to the development of financial technologies under the impact of restrictions imposed by international economic sanctions. The development of this sector was analyzed based on empirical studies of available information on the state of the FinTech sector in 28 countries that are impacted by international economic sanctions, using the Global Sanctions Database presented by OFAC (Office of Foreign Assets Control). The research involved comprehensive research methods: situational analysis, system analysis, reproductive analysis, structural and functional analysis. The results of the study confirmed the main hypothesis: international economic sanctions do not block the development of financial technologies, as FinTech can ensure the development of the financial sphere of sanctioned countries because of its flexibility and mobility. The calculations proved that depending on the way of combining the internal perception of external restrictions imposed by the sanctions, which is unique for each country, international economic sanctions are a stimulator for some countries (China, Ukraine, Iran), while being a significant development blocker (r=0.896) for others (with a financial technology performance less than 1). This study will be useful not only to scholars who deal with the theoretical and methodological framework of the development of the financial sector of countries subject to sanctions.
Publisher
World Scientific and Engineering Academy and Society (WSEAS)
Subject
Economics and Econometrics,Finance,Business and International Management
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