ICT DIFFUSION AND STOCK MARKET DEVELOPMENT: ANALYZING THE MODERATING ROLE OF TECHNOLOGICAL INNOVATIONS AND GLOBALIZATION IN ASEAN AND SAARC ECONOMIES

Abstract

This study analyzed how ICT diffusion, with the moderating role of technological innovations and globalization, has made contribution in the stock market development of SAARC and ASEAN countries. The comparative analysis of both regions brings into light how the regional differences in the name of ICT diffusion, technological innovation, and level of globalization, have played significant role in the stock market development. The findings reveal that ICT significantly enhances stock market growth in both regions. However, the effects of individual ICT components vary, with broadband and telephone subscriptions playing a more consistent role, while mobile subscriptions exhibit a negative impact in SAARC. Technological innovations, measured through resident and non-resident patent applications, positively influence stock market development and further strengthen the ICT-stock market growth relationship. Globalization also supports stock market expansion, though its interaction with ICT differs across regions. These results highlight the need for integrated policies that promote digital infrastructure, foster innovation, and enhance financial market efficiency.