Simplice A, Asongu (2012): How has Mobile Phone Penetration Stimulated Financial Development in Africa? Forthcoming in:
Download (179kB) | Preview
In the first macroeconomic empirical assessment of the relationship between mobile phones and finance, this paper examines the correlations between mobile phone penetration and financial development using two conflicting definitions of the financial system in the financial development literature. With the traditional IFS (2008) definition, mobile phone penetration has a negative correlation with traditional financial intermediary dynamics of depth, activity and size. However, when a previously missing informal-financial sector component is integrated into the definition, mobile phone penetration has a positive correlation with informal financial development. Three implications result: there is a growing role of informal finance; mobile phone penetration may not be positively assessed at a macroeconomic level by traditional financial development indicators and; it is a wake-up call for scholarly research on informal financial development indicators which will oriented monetary policy.
|Item Type:||MPRA Paper|
|Original Title:||How has Mobile Phone Penetration Stimulated Financial Development in Africa?|
|Keywords:||Banking; Mobile Phones; Shadow Economy; Financial Development; Africa|
|Subjects:||L - Industrial Organization > L9 - Industry Studies: Transportation and Utilities > L96 - Telecommunications
O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O17 - Formal and Informal Sectors ; Shadow Economy ; Institutional Arrangements
E - Macroeconomics and Monetary Economics > E0 - General > E00 - General
O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O33 - Technological Change: Choices and Consequences ; Diffusion Processes
G - Financial Economics > G2 - Financial Institutions and Services > G20 - General
|Depositing User:||Simplice Anutechia Asongu|
|Date Deposited:||11. Sep 2012 11:02|
|Last Modified:||03. Jul 2015 15:44|
Aker, J., & Mbiti, I. (2010). Mobile Phones and Economic Development in Africa.Journal of Economic Perspectives, 24(3), 207-232.
Andrés, A. R. (2006). Software piracy and income inequality. Applied Economic Letters, 13 (2), 101-105.
Asongu, S. A. (2010). Bank efficiency and openness: do income-levels matter? MPRA Paper No. 27025.
Asongu, S. A. (2011a). New financial intermediary development indicators for developing countries. MPRA Paper No. 30921.
Asongu, S. A. (2011b). Law, finance, economic growth and welfare: why does legal origin matter? MPRA Paper No. 33868.
Asongu, S. A. (2011c). Law and finance in Africa. MPRA Paper No. 34080.
Asongu, S. A. (2011d). Finance and democracy in Africa. MPRA Paper No. 35500.
Asongu, S. A. (2011e). Why do French civil-law countries have higher levels of financial efficiency. Journal of Advanced Research in Law and Economics, 2(2), 94-108.
Batuo, E. M., Guidi, F., & Kupukile, M. (2010). Financial Development and Income Inequality: Evidence from African Countries. African Development Bank.
Demombynes, G., & Thegeya, A. (2012, March). Kenya’s Mobile Revolution and the Promise of Mobile Savings. World Bank Policy Research Working Paper, No. 5988.
IMF (2008, October). International Financial Statistics Yearbook, 2008. IMF Statistics Department.
Ivatury, G., & Mas, I. (2008). The early experience with branchless banking. Washington, DC:CGAP.
Ivatury, G., & Pickens, M. (2006). Mobile phone banking and low-income customers: Evidence from South Africa. Washington, DC: Consultative group to assist the poor (CGAP) and the United Nations Foundation.
Jonathan, D., & Camilo, T. (2008). Mobile banking and economic development: Linking adoption, impact and use. Asian Journal of Communication, 18(4), 318-322.
Mas, I., & Radcliffe, D. (2011). Mobile Payments Go Viral: M-PESA in Kenya. Capco Institute’s Journal of Financial Transformation, No. 32, p. 169, August 2011 YES AFRICA CAN: SUCCESS STORIES FROM A DYNAMIC CONTINENT, P. Chuhan-Pole and M. Angwafo, eds., World Bank, August 2011.
Maurer, B. (2008, May). Retail electronic payments systems for value transfers in the developing world. Department of Anthropology, University of California.
Mbiti, I., & Weil, D. N. (2011, June).Mobile Banking: The Impact of M-Pesa in Kenya. NBER Working Paper No.17129.
Merritt, C. (2010, August). Mobile Money Transfer Services: The Next Phase in the Evolution in Person-to-Person Payments. Federal Reserve Bank of Atlanta, Retail Payments Risk Forum White Paper.
Ndikumana, L. (2000). Financial Determinants of Domestic Investment in Sub-Saharan Africa: Evidence from Panel Data. World Development, 28(2), 381-400.
Neville, W. (2006). Micro-payment systems and their application to mobile networks. Washington, D.C: infoDev/World Bank. Available at: http://www.infodev.org/en/Publication.43.html.
Ondiege, P. (2010). Mobile Banking in Africa: Taking the Bank to the People. Africa Economic Brief, 1(8), 1-16.
Porteous, D. (2007). Just how transformational is m-banking? Retrieved 10 January, 2008, http://www.finmarktrust.org.za/accessfrontier/Documents/transformational_mbanking.pdf
Thacker, K. U. M & Wright, G. A. N. (2012, January). Building Business Models for Money. MicroSave Briefing Note No.116.
The Economists (2008). Halfway There: How to promote the spread of mobile phones among the world’s poorest. http://www.economist.com/node/11465558?story_id=11465558.
Vaughan, P. (2007). Early lessons from the deployment of M-PESA, Vodafone‟s own mobile transactions service. In D. Coyle (Ed.), The transformational potential of m-transactions (pp. 6-9). London: Vodafone Group.