Conditional Determinants of Mobile Phones Penetration and Mobile Banking in Sub-Saharan Africa

Journal of the Knowledge Economy, 9(1),pp. 81–135 (March, 2018).

44 Pages Posted: 23 Oct 2015 Last revised: 28 Mar 2018

See all articles by Simplice Asongu

Simplice Asongu

African Governance and Development Institute

Date Written: October 21, 2015

Abstract

Using twenty-five policy variables, we investigate determinants of mobile phone/banking in 49 Sub-Saharan African countries with data for the year 2011. The determinants are classified into six policy categories, notably: macroeconomic, business/bank, market-related, knowledge economy, external flows and human development. The empirical evidence is based on contemporary and non-contemporary Quantile regressions. The following implications are relevant to the findings. First, mobile phone penetration is positively correlated with: (i) education, domestic savings, regulation quality and patent applications, especially at low initial levels of mobile penetration; (ii) bank density; (iii) urban population density and (iv) internet penetration. Second, the use of the mobile to pay bills is positively linked with: (i) trade and internet penetration, especially in contemporary specifications and (ii) remittances and patent applications, especially at low initial levels of the dependent variable. Third, using the mobile to send/receive money is positively correlated with: internet penetration and human development, especially in the contemporary specifications. Fourth, mobile banking is positively linked with: (i) trade in contemporary specifications; (ii) remittances and patent applications at low initial levels of the dependent variable and (iii) internet penetration and human development, with contemporary threshold evidence. The policy implications are articulated with incremental policy syndromes.

Keywords: Mobile phones; Mobile banking; Development; Africa

JEL Classification: G20; L96; O11; O33; O55

Suggested Citation

Asongu, Simplice, Conditional Determinants of Mobile Phones Penetration and Mobile Banking in Sub-Saharan Africa (October 21, 2015). Journal of the Knowledge Economy, 9(1),pp. 81–135 (March, 2018).. Available at SSRN: https://ssrn.com/abstract=2677296 or http://dx.doi.org/10.2139/ssrn.2677296

Simplice Asongu (Contact Author)

African Governance and Development Institute ( email )

P.O. Box 8413
Yaoundé, 8413
Cameroon

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