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Does mobile phone proficiency contribute to stock market participation? The role of payment convenience, liquidity, and social interaction

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  • Fatima, Shumaila
  • Chakraborty, Madhumita

Abstract

Limited stock market participation is a matter of concern for both academia and policymakers, whereas the role of mobile devices in financial inclusion has gained increasing attention. Existing literature has identified various factors of stock market participation (SMP), yet the critical intersection between technology and economy, particularly mobile phone proficiency (MPP), remains underexplored. This study utilizes data from the 2018 Financial Inclusion Insights (FII) survey of India, funded by the Bill and Melinda Gates Foundation, to examine the impact of MPP on SMP. Results suggest that MPP has a positive influence on SMP, with payment convenience, liquidity, and social interaction being essential channels in this mechanism. Our findings are robust to alternate measures and instrumental variable analysis. The outcomes remain consistent on using financial market participation (FMP) as the dependent variable. The results underscore the need for policy measures to enhance proficiency in using mobile phones to promote SMP.

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  • Fatima, Shumaila & Chakraborty, Madhumita, 2025. "Does mobile phone proficiency contribute to stock market participation? The role of payment convenience, liquidity, and social interaction," Economic Modelling, Elsevier, vol. 144(C).
    • Handle: RePEc:eee:ecmode:v:144:y:2025:i:c:s0264999324003456
    DOI: 10.1016/j.econmod.2024.106988
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    Keywords

    Mobile phone proficiency; Stock market participation; Financial market participation; Working mechanisms;
    All these keywords.

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G50 - Financial Economics - - Household Finance - - - General
    • G53 - Financial Economics - - Household Finance - - - Financial Literacy

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