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
Date Written: January 27, 2016
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: Suggested Citation