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The African Financial Development and Financial Inclusion Gaps

Author

Listed:
  • Franklin Allen
  • Elena Carletti
  • Robert Cull
  • Jun “Qj” Qian
  • Lemma Senbet
  • Patricio Valenzuela

Abstract

This paper investigates the African financial development and financial inclusion gaps relative to other peer developing countries. Using a set of variables related to financial development and inclusion, we first estimate the gaps between African countries and other developing countries with similar degrees of economic development. Then, we explore the determinants of financial development and inclusion and find that population density appears to be considerably more important for financial development and inclusion in Africa than elsewhere. We then show evidence that a recent innovation in financial services, mobile banking, has helped to overcome infrastructural problems and improve financial access. JEL CODES: G2; O1; R2. Key words: Financial development, financial inclusion, development gaps, Africa

Suggested Citation

  • Franklin Allen & Elena Carletti & Robert Cull & Jun “Qj” Qian & Lemma Senbet & Patricio Valenzuela, 2013. "The African Financial Development and Financial Inclusion Gaps," Documentos de Trabajo 305, Centro de Economía Aplicada, Universidad de Chile.
    • Handle: RePEc:edj:ceauch:305
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    References listed on IDEAS

    as
    1. Patrick Honohan & Thorsten Beck, 2007. "Making Finance Work for Africa," World Bank Publications - Books, The World Bank Group, number 6626, December.
    2. Jenny Aker, Rachid Boumnijel, Amanda McClelland, and Niall Tierney, 2011. "Zap It to Me: The Short-Term Impacts of a Mobile Cash Transfer Program - Working Paper 268," Working Papers 268, Center for Global Development.
    3. Franklin Allen & Elena Carletti & Robert Cull & Jun QJ Qian & Lemma Senbet & Patricio Valenzuela, 0. "Improving Access to Banking: Evidence from Kenya," Review of Finance, European Finance Association, vol. 25(2), pages 403-447.
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    9. Isaac Mbiti & David N. Weil, 2015. "Mobile Banking: The Impact of M-Pesa in Kenya," NBER Chapters, in: African Successes, Volume III: Modernization and Development, pages 247-293, National Bureau of Economic Research, Inc.
    10. Franklin Allen & Elena Carletti & Robert Cull & Jun QJ Qian & Lemma Senbet & Patricio Valenzuela, 2021. "Improving Access to Banking: Evidence from Kenya [A matter of experience? Understanding the decline in group lending]," Review of Finance, European Finance Association, vol. 25(2), pages 403-447.
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    More about this item

    Keywords

    financial development; financial inclusion; development gaps; africa;
    All these keywords.

    JEL classification:

    • G02 - Financial Economics - - General - - - Behavioral Finance: Underlying Principles

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