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Comparative human development thresholds for absolute and relative pro-poor mobile banking in developing countries

Author

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  • Simplice A. Asongu

    (Yaoundé/Cameroon)

  • Jacinta C. Nwachukwu

    (Coventry University, UK)

Abstract

We assess the correlations between mobile banking and inclusive development (poverty and inequality) in 93 developing countries for the year 2011. Mobile banking entails: ‘mobile phones used to pay bills’ and ‘mobile phones used to receive/send money’, while the modifying policy indicator is the human development index (HDI). The data is decomposed into seven sub-panels based on two fundamental characteristics, namely: regions (Latin America, Asia and Pacific, Central and Eastern Europe, and Middle East and North Africa) and income levels (upper middle income, lower middle income and low income). Our results show that at certain thresholds of the HDI, mobile banking is positively linked to inclusive development. The following specific findings are established. First, the increased use of mobile phones to pay bills is negatively correlated with: (i) poverty in lower-middle-income countries (LMIC), upper-middle-income countries (UMIC) and Latin American countries (LA), respectively at HDI thresholds of 0.725, 0.727 and 0.778 and; (ii) inequality in UMIC and LA with HDI thresholds of respectively 0.646 and 0.761. Second, the increased use of mobile phones to send/receive money is negatively correlated with: (i) poverty in LMIC, UMIC and Central and Eastern European countries (CEE) with corresponding HDI thresholds of 0.631, 0.750 and 0.750 and (ii) inequality in UMIC, CEE and LA at HDI thresholds of 0.665, 0.736 and 0.726 respectively. The findings are discussed in the light of current policy challenges in the transition from Millennium Development Goals to Sustainable Development Goals. We have exploited the only macroeconomic data on mobile banking currently available.

Suggested Citation

  • Simplice A. Asongu & Jacinta C. Nwachukwu, 2017. "Comparative human development thresholds for absolute and relative pro-poor mobile banking in developing countries," Research Africa Network Working Papers 17/007, Research Africa Network (RAN).
  • Handle: RePEc:abh:wpaper:17/007
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    Cited by:

    1. Asongu, Simplice & Asongu, Ndemaze, 2017. "Comparative Determinants of Quality of Growth in Developing Countries," MPRA Paper 80650, University Library of Munich, Germany.
    2. Simplice Asongu & Agyenim Boateng, 2018. "Introduction to Special Issue: Mobile Technologies and Inclusive Development in Africa," Journal of African Business, Taylor & Francis Journals, vol. 19(3), pages 297-301, July.
    3. Asongu, Simplice A. & Nwachukwu, Jacinta C., 2017. "Quality of Growth Empirics: Comparative gaps, benchmarking and policy syndromes," Journal of Policy Modeling, Elsevier, vol. 39(5), pages 861-882.
    4. Simplice A. Asongu, 2017. "A Survey on Inequality-Adjusted Human Development in Africa," Africagrowth Agenda, Africagrowth Institute, vol. 14(1), pages 4-7.
    5. Asongu, Simplice & Nwachukwu, Jacinta, 2017. "Recent finance advances in information technology for inclusive development: a survey," MPRA Paper 79638, University Library of Munich, Germany.

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    More about this item

    Keywords

    Mobile banking; quality of growth; poverty; inequality;
    All these keywords.

    JEL classification:

    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • I10 - Health, Education, and Welfare - - Health - - - General
    • I20 - Health, Education, and Welfare - - Education - - - General
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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