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Mobile Money: an instrument of Financial Development to reduce violent conflicts?

Author

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  • Alfred Nandnaba

    (UCA - Université Clermont Auvergne, CFE - CNRS-formation Entreprise - CNRS - Centre National de la Recherche Scientifique, LEO - Laboratoire d'Économie d'Orleans [2022-...] - UO - Université d'Orléans - UT - Université de Tours - UCA - Université Clermont Auvergne)

Abstract

Mobile money has become an important financial tool in many developing countries where access to traditional banking services is limited. Its introduction has helped to reduce poverty, unemployment and inequality, and has increased remittances, thus helping to mitigate conflict factors in developing countries.This article uses a conceptual framework based on capability approach and the impact analysis method called Entropy Balancing to examine the optimistic impact of mobile money adoption on armed conflict in 103 developing countries over the period 2000-2020. The results show that mobile money significantly reduces armed conflict by about 1.79 percentage points. The results are robust to several robustness tests, including alternative specifications and methods. Heterogeneity analysis shows that the effect may vary by type of mobile money, level of development, duration of conflict, financial development, and geographic area.Finally, income, unemployment, inequality and consumption volatility are the main channels through which mobile money can reduce violent conflicts.

Suggested Citation

  • Alfred Nandnaba, 2024. "Mobile Money: an instrument of Financial Development to reduce violent conflicts?," Working Papers hal-04566893, HAL.
  • Handle: RePEc:hal:wpaper:hal-04566893
    Note: View the original document on HAL open archive server: https://uca.hal.science/hal-04566893
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    More about this item

    Keywords

    Violent Conflicts; Mobile Money; Capability Approach; Entropy Balancing; Developing countries.; E26; F36; O11; O32;
    All these keywords.

    JEL classification:

    • E26 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Informal Economy; Underground Economy
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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