Mobile Phone Penetration, Mobile Banking and Inclusive Development in Africa

African Finance Journal, 18(1), pp. 34-52 (September, 2016).

African Governance and Development Institute, WP/16/021

25 Pages Posted: 28 Jun 2016 Last revised: 9 Sep 2016

See all articles by Simplice Asongu

Simplice Asongu

African Governance and Development Institute

Jacinta Nwachukwu

University of Huddersfield - Business School

Date Written: January 27, 2016

Abstract

The study assesses the role of mobile phones and mobile banking in decreasing inequality in 52 African countries. The empirical procedure involves first, examining the income-redistributive effect of mobile phone penetration and then investigating the contribution of mobile banking services in this relationship. The findings suggest an equalizing income-redistributive effect of ‘mobile phone penetration’ and ‘mobile banking’, with a higher income-equalizing effect from mobile banking compared to mobile phone penetration. Poverty alleviation channels explaining this difference in inequality mitigating propensity are discussed.

Keywords: Banking; Mobile Phones; Shadow Economy; Financial Development; Africa

JEL Classification: E00; G20; L96; O17; O33

Suggested Citation

Asongu, Simplice and Nwachukwu, Jacinta C., Mobile Phone Penetration, Mobile Banking and Inclusive Development in Africa (January 27, 2016). African Finance Journal, 18(1), pp. 34-52 (September, 2016).; African Governance and Development Institute, WP/16/021. Available at SSRN: https://ssrn.com/abstract=2801263 or http://dx.doi.org/10.2139/ssrn.2801263

Simplice Asongu (Contact Author)

African Governance and Development Institute ( email )

P.O. Box 8413
Yaoundé, 8413
Cameroon

Jacinta C. Nwachukwu

University of Huddersfield - Business School ( email )

Queensgate
Huddersfield HD1 3DH
United Kingdom

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