ABSTRACT

New financial technologies in China and Brazil and their implications on inclusive economic growth | Laís Bueno Sachs | Yenching Academy | Contemporary Chinese Studies

During the last decade, a whole new set digital technology has been spread in the financial world and transformed it. Digital Wallets, Electronic Payment Systems, Digital cash, Cryptocurrencies, for instance, are affecting the way entire societies deal with money and investments. China and Brazil, in this context, are not exceptions. Indeed, both the Chinese and the Brazilian economies are under intense transformation as a result of the rise of these new digital technologies applied to the financial sector.

In pursuance of a better understand of the digital economic environments that are emerging in these countries, this dissertation discusses the following research questions:

i. “Do new financial technologies boost Inclusive Economic Growth in developing countries?” and

ii. “What are the major factors affecting the adoption of these new financial technologies?”

Although the neoclassical economic theory provides tools and mathematical models to predict Economic Growth, the role that new digital technologies applied to the financial sector play on this growth has not been properly addressed so far by this approach. Indeed, no casual relation between Economic Growth and the emergence of new financial technologies has been established so far. Moreover, the impact of these new technologies in a society’s economic inclusiveness has not been properly studied either.

By comparing theoretical predictions about the economic impact of these new financial technologies with the reality observed in Brazil and China, this dissertation aims to clarify what independent variables influence Economic Growth and economic inclusiveness in the countries analysed. In order to achieve this objective, a qualitative methodology was applied to compare these two different countries – Brazil and China – that present similar results in regards to the emergence and application of new digital technology applied to the financial sector.

After discussing these two questions, it is hoped that some insights can be provided lightning up how the implementation of new financial technologies – electronic payment platforms in special – can contribute for Inclusive Economic Growth. In other words, it is aimed that this dissertation will bring new information and qualitative analysis of the relation between economic growth, economic inclusiveness and new digital financial technologies.

KEYWORDS: China, Brazil, Economic Growth, New Financial Technologies.

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