Digitalization of the Money Market. How Does Digitalization and the Money Market Instruments Enhance Living Standards in South Africa?
Keywords:
Digitalization, Gross domestic product per capita, Money market instruments, Mobile cellular subscriptions, Living standardsAbstract
Objective: The objective is to examine how digitalization and instruments of the money market can enhance living standards in South Africa from 1992 to 2024. Prior Work: South Africa has experienced improvements in the standards of living since its transition to democracy, however in the last decade improvements in the quality of life have been uneven. Inclusive financial systems and digitalization have played a role in the betterment of the citizens standard of living by providing banking services that are easily accessible. Approach: The autoregressive distributed lag bounds approach was utilised, including other econometric techniques. Results: The variables are stationary and cointegrated. Furthermore, showing that digitalization and some money market instruments positively influence living standards in the short and long term. Implications: This article highlights that digitalization acts as a catalyst for financial inclusion while simultaneously risking the widening of economic divides. Programs and measures that will promote innovation, financial inclusion and the development of the money market should be put in place and implemented. Monetary and fiscal measures, including research and development programs. Value: The study sheds light on the influence that digitalization and money market instruments have on South Africa’s living standards.
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