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Conditional Determinants of Mobile Phones Penetration and Mobile Banking in Sub-Saharan Africa

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  • Simplice A. Asongu

    (African Governance and Development Institute)

Abstract

Using 25 policy variables, this study investigates determinants of mobile phone/banking in 49 sub-Saharan African countries with data for the year 2011. The determinants are classified into six policy categories, notably macroeconomic, business/bank, market-related, knowledge economy, external flows and human development. The empirical evidence is based on contemporary and non-contemporary quantile regressions. The following implications are relevant to the findings. First, mobile phone penetration is positively correlated with (i) education, domestic savings, regulation quality and patent applications, especially at low initial levels of mobile penetration; (ii) bank density; (iii) urban population density and (iv) internet penetration. Second, the use of the mobile to pay bills is positively linked with (i) trade and internet penetration, especially in contemporary specifications and (ii) remittances and patent applications, especially at low initial levels of the dependent variable. Third, using the mobile to send/receive money is positively correlated with internet penetration and human development, especially in the contemporary specifications. Fourth, mobile banking is positively linked with (i) trade in contemporary specifications, (ii) remittances and patent applications at low initial levels of the dependent variable and (iii) internet penetration and human development, with contemporary threshold evidence. The policy implications are articulated with incremental policy syndromes.

Suggested Citation

  • Simplice A. Asongu, 2018. "Conditional Determinants of Mobile Phones Penetration and Mobile Banking in Sub-Saharan Africa," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 9(1), pages 81-135, March.
  • Handle: RePEc:spr:jknowl:v:9:y:2018:i:1:d:10.1007_s13132-015-0322-z
    DOI: 10.1007/s13132-015-0322-z
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    More about this item

    Keywords

    Mobile phones; Mobile banking; Development; Africa;
    All these keywords.

    JEL classification:

    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • 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

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