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Mobile money innovation and global value chain participation: Evidence from developing countries

Author

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  • Ajide, Folorunsho M.
  • Sakariyahu, Rilwan
  • Lawal, Rodiat
  • Etudaiye-Muhtar, Oyebola Fatima
  • Johan, Sofia

Abstract

This study provides empirical insights on the effect of mobile money innovation on global value chain participation. Applying quantile estimation technique on the data of 90 developing economies between 2011 and 2018, we document that mobile money innovation has significant positive effect on participation in global value chains. Furthermore, our results reveal that economic and governance factors such as financial development, human capital development, tariff and distance are crucial variables that influence participation in global value chain. We recommend that friendly trade policies and investment in socioeconomic infrastructures and human capital development would help in facilitating the wide-spread adoption of mobile money innovations and enhance GVC participation.

Suggested Citation

  • Ajide, Folorunsho M. & Sakariyahu, Rilwan & Lawal, Rodiat & Etudaiye-Muhtar, Oyebola Fatima & Johan, Sofia, 2023. "Mobile money innovation and global value chain participation: Evidence from developing countries," Finance Research Letters, Elsevier, vol. 58(PD).
    • Handle: RePEc:eee:finlet:v:58:y:2023:i:pd:s1544612323010668
    DOI: 10.1016/j.frl.2023.104694
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    Cited by:

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    2. Nepal, Rabindra & Deng, Youyi & Dong, Kangyin, 2025. "Going with the flow: How does global energy value chain adapt to geopolitical risks?," Energy Economics, Elsevier, vol. 144(C).
    3. Luo, Heng & Sun, Ying & Tao, Xiaosha & Tan, Wenwu & Kamarudin, Fakarudin, 2024. "Effects of global value chains on energy efficiency in G20 countries," Energy, Elsevier, vol. 313(C).
    4. Oyebola Etudaiye-Muhtar, Fatima & Johan, Sofia & Lawal, Rodiat & Sakariyahu, Rilwan, 2024. "Fintech, human development and energy poverty in sub-Saharan Africa," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 91(C).
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    6. Lawal, Rodiat & Sakariyahu, Rilwan, 2024. "Investor heterogeneity and global stock market participation," Economics Letters, Elsevier, vol. 242(C).

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    More about this item

    Keywords

    Global value chains; Mobile money innovation; Developing countries;
    All these keywords.

    JEL classification:

    • E41 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Demand for Money
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • F18 - International Economics - - Trade - - - Trade and Environment
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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