Authors: Matthew AGBA, Prachi Gautam, Nidhi Susan Sunu, Shriya Ajit Patil, Ashwani Pradeep Kumar Tiwari, Pukhrambam Elizabeth Devi, Mulamba Adrian Felix

Abstract

The research primarily focuses on the impact of digitalisation and financial development on self-employment. To conduct the study moderate multiple regression analysis is conducted and the data was collected from the World Bank’s Open Data and other publicly available macroeconomic databases resulting in 300 observations covering 15 developing countries over the period 2005-2024. This study examines how digitalization and digital financial inclusion are associated with self-employment,specifically analyzing how regional digital infrastructure and institutional framework influence occupational choice. It fills a research gap by treating unemployment as not just a control variable but as a key catalyst which promotes self-employment. The result of analysis shows that digitalisation alone has an important direct effect on self-employment, but it depends on shift labour dynamics, whereas domestic financial development has negatively affected self-employment, as it leads to formal wage employment.

Keywords: Digitalization, Financial Inclusion, Labour Dynamics, Self-Employment and Formal Wage Employment.