IDEAS home Printed from https://ideas.repec.org/a/eee/telpol/v49y2025i7s0308596125000977.html

Establishment of mobile money corridors and Burkina Faso's intra-WAEMU trade

Author

Listed:
  • Lankoande, Lamoussa Seydou

Abstract

Intra-African trade remains low, constituting an obstacle to the socio-economic development of the continent. This research looks at the potential influence of mobile money in West Africa on the region's internal trade, focusing specifically on the WAEMU. It thus examines the effect of the establishment of mobile money corridors between Burkina Faso and WAEMU countries on Burkina Faso's trade within the union. The research is based on the gravity model and on data relating to six partners of Burkina Faso in the WAEMU over the period 2000 to 2022. Results obtained using Hausman-Taylor (HT) and generalized least squares (GLS) methods argue that the establishment of mobile money corridors between WAEMU countries increases Burkina Faso's intra-WAEMU exports. The inclusion of political stability in the analyses and the use of the Poisson pseudo-maximum-likelihood (PPML) and propensity score matching (PSM) method corroborate the results. From a broad perspective, these results suggest that the development of mobile money corridors between African countries could play a key role in increasing intra-African trade.

Suggested Citation

  • Lankoande, Lamoussa Seydou, 2025. "Establishment of mobile money corridors and Burkina Faso's intra-WAEMU trade," Telecommunications Policy, Elsevier, vol. 49(7).
  • Handle: RePEc:eee:telpol:v:49:y:2025:i:7:s0308596125000977
    DOI: 10.1016/j.telpol.2025.103000
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0308596125000977
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.telpol.2025.103000?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Yao, Becatien H. & Shanoyan, Aleksan & Schwab, Benjamin & Amanor-Boadu, Vincent, 2022. "Mobile money, transaction costs, and market participation: evidence from Côte d’Ivoire and Tanzania," Food Policy, Elsevier, vol. 112(C).
    2. Hausman, Jerry A & Taylor, William E, 1981. "Panel Data and Unobservable Individual Effects," Econometrica, Econometric Society, vol. 49(6), pages 1377-1398, November.
    3. Ajzen, Icek, 1991. "The theory of planned behavior," Organizational Behavior and Human Decision Processes, Elsevier, vol. 50(2), pages 179-211, December.
    4. Martinez-Zarzoso, Inmaculada & Nowak-Lehmann, Felicitas, 2003. "Augmented Gravity Model: An Empirical Application to Mercosur-European Union Trade Flows," Journal of Applied Economics, Universidad del CEMA, vol. 6(2), pages 1-26, November.
    5. Felix Olu Bankole & Kweku-Muata Osei-Bryson & Irwin Brown, 2015. "The Impact of Information and Communications Technology Infrastructure and Complementary Factors on Intra-African Trade," Information Technology for Development, Taylor & Francis Journals, vol. 21(1), pages 12-28, January.
    6. Baltagi, Badi H. & Liu, Long, 2012. "The Hausman–Taylor panel data model with serial correlation," Statistics & Probability Letters, Elsevier, vol. 82(7), pages 1401-1406.
    7. Kere, Safilidin & Zongo, Amara, 2023. "Digital technologies and intra-African trade," International Economics, Elsevier, vol. 173(C), pages 359-383.
    8. Antonucci, Daniele & Manzocchi, Stefano, 2006. "Does Turkey have a special trade relation with the EU?: A gravity model approach," Economic Systems, Elsevier, vol. 30(2), pages 157-169, June.
    9. Mothobi, Onkokame & Grzybowski, Lukasz, 2017. "Infrastructure deficiencies and adoption of mobile money in Sub-Saharan Africa," Information Economics and Policy, Elsevier, vol. 40(C), pages 71-79.
    10. Chen, Jia & Gao, Jiti & Li, Degui, 2012. "Semiparametric trending panel data models with cross-sectional dependence," Journal of Econometrics, Elsevier, vol. 171(1), pages 71-85.
    11. Boniface Ngah Epo & Ronie Bertrand Nguenkwe, 2020. "Information and Communication Technology and Intra-Regional Trade in the Economic Community of West African States: Ambivalent or Complementary?," Economics Bulletin, AccessEcon, vol. 40(2), pages 1397-1412.
    12. Ahmad, Ahmad Hassan & Green, Christopher J. & Jiang, Fei & Murinde, Victor, 2023. "Mobile money, ICT, financial inclusion and growth: How different is Africa?," Economic Modelling, Elsevier, vol. 121(C).
    13. Geraci, Vincent J & Prewo, Wilfried, 1977. "Bilateral Trade Flows and Transport Costs," The Review of Economics and Statistics, MIT Press, vol. 59(1), pages 67-74, February.
    14. Augstin Kwasi Fosu, 2003. "Political Instability and Export Performance in Sub-Saharan Africa," Journal of Development Studies, Taylor & Francis Journals, vol. 39(4), pages 68-83.
    15. Koffi Dumor & Zhao Shurong & Hafez Komla Dumor & Enock Mintah Ampaw & Edem Koffi Amouzou & Samuel Okae-Adjei & Eric Kofi Boadi, 2024. "Evaluating the effect of ICT on trade and economic growth from the perspective of Eastern African belt and road countries," Information Technology for Development, Taylor & Francis Journals, vol. 30(3), pages 452-471, July.
    16. John C. Anyanwu, 2014. "Does Intra‐African Trade Reduce Youth Unemployment in Africa?," African Development Review, African Development Bank, vol. 26(2), pages 286-309, June.
    17. William Jack & Tavneet Suri, 2014. "Risk Sharing and Transactions Costs: Evidence from Kenya's Mobile Money Revolution," American Economic Review, American Economic Association, vol. 104(1), pages 183-223, January.
    18. Goksel, Turkmen, 2012. "Financial constraints and international trade patterns," Economic Modelling, Elsevier, vol. 29(6), pages 2222-2225.
    19. Joseph Mawejje & Paul Lakuma, 2019. "Macroeconomic effects of Mobile money: evidence from Uganda," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 5(1), pages 1-20, December.
    20. J. M. C. Santos Silva & Silvana Tenreyro, 2006. "The Log of Gravity," The Review of Economics and Statistics, MIT Press, vol. 88(4), pages 641-658, November.
    21. Sawadogo, Fayçal & Wandaogo, Abdoul-Akim, 2021. "Does mobile money services adoption foster intra-African goods trade?," Economics Letters, Elsevier, vol. 199(C).
    22. Felicitas Nowak‐Lehmann & Dierk Herzer & Inmaculada Martinez‐Zarzoso & Sebastian Vollmer, 2007. "The Impact of a Customs Union between Turkey and the EU on Turkey's Exports to the EU," Journal of Common Market Studies, Wiley Blackwell, vol. 45(3), pages 719-743, September.
    23. Bai, Jushan & Li, Kunpeng, 2010. "Theory and methods of panel data models with interactive effects," MPRA Paper 43441, University Library of Munich, Germany, revised Dec 2012.
    24. Egger, Peter, 2000. "A note on the proper econometric specification of the gravity equation," Economics Letters, Elsevier, vol. 66(1), pages 25-31, January.
    25. Brian Tavonga Mazorodze, 2024. "Access to finance and intra-Africa trade efficiency," Journal of Shipping and Trade, Springer, vol. 9(1), pages 1-14, December.
    26. Robert C. Feenstra & Zhiyuan Li & Miaojie Yu, 2014. "Exports and Credit Constraints under Incomplete Information: Theory and Evidence from China," The Review of Economics and Statistics, MIT Press, vol. 96(4), pages 729-744, October.
    27. Badi H. Baltagi & Peter Egger & Michael Pfaffermayr, 2013. "A Generalized Spatial Panel Data Model with Random Effects," Econometric Reviews, Taylor & Francis Journals, vol. 32(5-6), pages 650-685, August.
    28. Aliyu, Shehu Usman Rano, 2024. "Intra-African Trade and Macroeconomic Performance of Africa: Implications for the African Continental Free Trade Area," MPRA Paper 121436, University Library of Munich, Germany, revised 22 Jun 2024.
    29. Fayçal Sawadogo & Abdoul-Akim Wandaogo, 2021. "Does mobile money services adoption foster intra-African goods trade?," Post-Print hal-03620202, HAL.
    30. repec:bla:jcmkts:v:45:y:2007:i::p:719-743 is not listed on IDEAS
    31. Anderson, James E, 1979. "A Theoretical Foundation for the Gravity Equation," American Economic Review, American Economic Association, vol. 69(1), pages 106-116, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Paola Cardamone, 2007. "A Survey of the Assessments of the Effectiveness of Preferential Trade Agreements using Gravity Models," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 60(4), pages 421-473.
    2. Pedro E. Moncarz, 2010. "Determinantes del comercio de servicios financieros Potencial de exportaciones para los países sudamericanos," Documentos de trabajo 2010019, Banco Central del Uruguay.
    3. Kareem, Fatima Olanike & Martinez-Zarzoso, Inmaculada & Brümmer, Bernhard, 2016. "Fitting the Gravity Model when Zero Trade Flows are Frequent: a Comparison of Estimation Techniques using Africa's Trade Data," GlobalFood Discussion Papers 230588, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    4. Yongcheol Shin & Laura Serlenga, 2007. "Gravity models of intra-EU trade: application of the CCEP-HT estimation in heterogeneous panels with unobserved common time-specific factors," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(2), pages 361-381.
    5. Oleksandr Shepotylo, 2009. "Gravity with zeros: estimating trade potential of CIS countries," Discussion Papers 16, Kyiv School of Economics.
    6. Valenzuela-Klagges, Bárbara & Corvalán-Quiroz, Alejandro & Fuenzalida-O'Shee, Darcy, 2018. "Trade facilitation and its effects on Chile’s bilateral trade between 2006 and 2014," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    7. Güzin Bayar, 2018. "Estimating export equations: a survey of the literature," Empirical Economics, Springer, vol. 54(2), pages 629-672, March.
    8. Simone Juhasz Silva & Douglas Nelson, 2012. "Does Aid Cause Trade? Evidence from an Asymmetric Gravity Model," The World Economy, Wiley Blackwell, vol. 35(5), pages 545-577, May.
    9. Sally Milton & M A B Siddique, 2014. "Trade Creation and Diversion Under the Thailand-Australia Free Trade Agreement (TAFTA)," Economics Discussion / Working Papers 14-26, The University of Western Australia, Department of Economics.
    10. Michele Fratianni & Francesco Marchionne, 2011. "The Limits to Integration," Chapters, in: Miroslav N. Jovanović (ed.), International Handbook on the Economics of Integration, Volume I, chapter 9, Edward Elgar Publishing.
    11. Anderson, James E. & Vesselovsky, Mykyta & Yotov, Yoto V., 2016. "Gravity with scale effects," Journal of International Economics, Elsevier, vol. 100(C), pages 174-193.
    12. Valeria Costantini & Francesco Crespi, 2015. "European enlargement policy, technological capabilities and sectoral export dynamics," The Journal of Technology Transfer, Springer, vol. 40(1), pages 25-69, February.
    13. Andrew J. Cassey, 2010. "Analyzing the export flow from Texas to Mexico," Staff Papers, Federal Reserve Bank of Dallas, issue Oct.
    14. Claudio Candia Campano & Medardo Aguirre Gonz�lez & Lilliam Ant�n L�pez & Javier Beltr�n Valdebenito, 2018. "A gravity model of trade for Nicaraguan agricultural exports," Revista Cuadernos de Economia, Universidad Nacional de Colombia, FCE, CID, vol. 37(74), pages 391-428.
    15. INSEL, Aysu & TEKCE, Mahmut, 2010. "Econometric Analysis of the Bilateral Trade Flows in the Gulf Cooperation Council Countries," MPRA Paper 22184, University Library of Munich, Germany.
    16. Michele Fratianni & Francesco Marchionne, 2012. "Trade Costs and Economic Development," Economic Geography, Taylor & Francis Journals, vol. 88(2), pages 137-163, April.
    17. Sotja G. Dlamini & Abdi-Khalil Edriss & Alexander R. Phiri & Micah B. Masuku, 2016. "Determinants of Swaziland¡¯s Sugar Export: A Gravity Model Approach," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 8(10), pages 71-81, October.
    18. Christopher S. P. Magee, 2016. "Trade creation, trade diversion, and the general equilibrium effects of regional trade agreements: a study of the European Community–Turkey customs union," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 152(2), pages 383-399, May.
    19. Felix Groba, 2014. "Determinants of trade with solar energy technology components: evidence on the porter hypothesis?," Applied Economics, Taylor & Francis Journals, vol. 46(5), pages 503-526, February.
    20. Amjad Naveed & Ghulam Shabbir & Shabib Haider Syed & Muhammad Ashfaq & Muhammad Ali Khan, 2022. "Can a path to peace promote export growth? Evidence from Pakistan and its trading partners," Quality & Quantity: International Journal of Methodology, Springer, vol. 56(5), pages 3309-3324, October.

    More about this item

    Keywords

    ;
    ;
    ;

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:telpol:v:49:y:2025:i:7:s0308596125000977. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/30471/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.