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The role of economic growth in modulating mobile connectivity dynamics for financial inclusion in developing countries

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  • Asongu, Simplice A
  • Odhiambo, Nicholas M

Abstract

This study establishes economic growth needed for supply-side mobile money drivers in developing countries to be positively related to mobile money innovations in the perspectives of mobile money accounts, the mobile phone used to send money, and the mobile phone used to receive money. The empirical evidence is based on Tobit regressions. For the negative net relationships that are computed, minimum economic growth thresholds are established above which the net negative relationships become net positive relationships. The following minimum economic growth rates are required for nexuses between supply-side mobile money drivers and mobile money innovations to be positive: (i) 6.109% (6.193%) of GDP growth for mobile connectivity performance to be positively associated with the mobile phone used to send (receive) money and (ii) 4.590 % (4.259%) of GDP growth for mobile connectivity coverage to be positively associated with the mobile phone used to send (receive) money.

Suggested Citation

  • Asongu, Simplice A & Odhiambo, Nicholas M, 2022. "The role of economic growth in modulating mobile connectivity dynamics for financial inclusion in developing countries," Working Papers 29009, University of South Africa, Department of Economics.
    • Handle: RePEc:uza:wpaper:29009
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    File URL: http://uir.unisa.ac.za/bitstream/handle/10500/29009/The%20of%20role%20economic%20growth%20in%20modulating%20mobile%20connectivity%20dynamics%20for%20financial%20inclusion%20in%20developing%20countries.pdf
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    Cited by:

    1. Simplice Asongu & Nicholas M. Odhiambo, 2023. "Health performance and economic growth in sub-Saharan Africa: new evidence based on quantile regressions," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 50(12), pages 1655-1671, May.

    More about this item

    Keywords

    Mobile money; technology diffusion; financial inclusion; inclusive innovation;
    All these keywords.

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