Mobile Banking and Mobile Phone Penetration: Which is More Pro-Poor in Africa?
African Governance and Development Institute WP/13/033
22 Pages Posted: 10 Sep 2014
Date Written: September 8, 2013
The contribution of this paper to complement theoretical and qualitative mobile penetration literature with empirical evidence is twofold: firstly, we assess the income-redistributive effect of mobile phone penetration and; secondly, the instrumentality of financial development dynamics in this nexus. Main findings suggest an equalizing income-redistributive effect of ‘mobile phone penetration’ and ‘mobile banking’, with a higher income-equalizing effect in the latter than in the former. Poverty alleviation channels explaining this difference in inequality mitigating propensity are discussed. The empirical evidence is based on 52 African countries and deviates from mainstream country-specific and microeconomic survey-based approaches.
Keywords: Banking; Mobile Phones; Shadow Economy; Financial Development; Africa
JEL Classification: E00; G20; L96; O17; O33
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