IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-03622403.html
   My bibliography  Save this paper

Mobile Money-Driven Financial Inclusion and Financial Resilience in Sub-Saharan Africa: Insights from Cameroon
[L’inclusion financière via le mobile money et résilience financière en Afrique Subsaharienne: cas du Cameroun]

Author

Listed:
  • Patrick-Hervé Mbouombouo Mfossa

    (CCAM - Centre Congolais Allemand de Microfinance - UPC - Université protestante au Congo)

Abstract

While there has been increasing interest in the economic effects of mobile money in Sub-Saharan Africa, there is little empirical literature on the role of mobile money in the nexus between financial inclusion and financial resilience. This paper uses the 2017 Global Findex 1,000 representative sample collected in Cameroon to examine how mobile money affects people's ability to face negative shocks by coming up with an emergency fund in due time. Our results indicate that access to this financial inclusion tool increases the average ability of being resilient during an economic emergency, but the magnitude of this effect depends on whether the treatment-effects model implemented controls for the endogeneity of mobile money adoption or not. Whereas the average resilience ability if no one in the treated and the overall population had access to a mobile money account is considerably higher when disregarding endogeneity (0.47 vs. 0.37 and 0.62 vs. 0.09 respectively), our results demonstrate that the increase in financial resilience ability due to mobile money adoption is higher when controlling for endogeneity (0.74 vs. 0.053 and 0.60 vs. 0.07 respectively). Thus, disregarding endogeneity tend to underestimate the positive effect of this digital financial inclusion tool

Suggested Citation

  • Patrick-Hervé Mbouombouo Mfossa, 2019. "Mobile Money-Driven Financial Inclusion and Financial Resilience in Sub-Saharan Africa: Insights from Cameroon [L’inclusion financière via le mobile money et résilience financière en Afrique Subsah," Post-Print hal-03622403, HAL.
    • Handle: RePEc:hal:journl:hal-03622403
    Note: View the original document on HAL open archive server: https://hal.science/hal-03622403
    as

    Download full text from publisher

    File URL: https://hal.science/hal-03622403/document
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Allen, Franklin & Demirguc-Kunt, Asli & Klapper, Leora & Martinez Peria, Maria Soledad, 2016. "The foundations of financial inclusion: Understanding ownership and use of formal accounts," Journal of Financial Intermediation, Elsevier, vol. 27(C), pages 1-30.
    2. Maren Duvendack & Philip Mader, 2020. "Impact Of Financial Inclusion In Low‐ And Middle‐Income Countries: A Systematic Review Of Reviews," Journal of Economic Surveys, Wiley Blackwell, vol. 34(3), pages 594-629, July.
    3. Jana Hamdan, 2019. "The Impact of Mobile Money in Developing Countries," DIW Roundup: Politik im Fokus 131, DIW Berlin, German Institute for Economic Research.
    4. Blumenstock, Joshua E. & Eagle, Nathan & Fafchamps, Marcel, 2016. "Airtime transfers and mobile communications: Evidence in the aftermath of natural disasters," Journal of Development Economics, Elsevier, vol. 120(C), pages 157-181.
    5. Olga Morawczynski & Mark Pickens, 2009. "Poor People Using Mobile Financial Services : Observations on Customer Usage and Impact from M-PESA," World Bank Publications - Reports 9492, The World Bank Group.
    6. World Bank, 2014. "Global Financial Development Report 2014 : Financial Inclusion," World Bank Publications - Books, The World Bank Group, number 16238, December.
    7. Jenny C. Aker & Rachid Boumnijel & Amanda McClelland & Niall Tierney, 2016. "Payment Mechanisms and Antipoverty Programs: Evidence from a Mobile Money Cash Transfer Experiment in Niger," Economic Development and Cultural Change, University of Chicago Press, vol. 65(1), pages 1-37.
    8. Emmanuel Kwablah Apiors & Aya Suzuki, 2018. "Mobile Money, Individuals’ Payments, Remittances, and Investments: Evidence from the Ashanti Region, Ghana," Sustainability, MDPI, vol. 10(5), pages 1-26, May.
    9. 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.
    10. Darren Flood & Tim West & Daniel Wheadon, 2013. "Trends in Mobile Payments in Developing and Advanced Economies," RBA Bulletin (Print copy discontinued), Reserve Bank of Australia, pages 71-80, March.
    11. Jerry Buckland, 2018. "Building Financial Resilience," Springer Books, Springer, number 978-3-319-72419-5, September.
    12. Riley, Emma, 2018. "Mobile money and risk sharing against village shocks," Journal of Development Economics, Elsevier, vol. 135(C), pages 43-58.
    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. Patrick-Hervé Mbouombouo Mfossa, 2022. "Mobile money-driven financial inclusion, exposure to shocks and households' financial resilience strategies adoption process: Evidence from Cameroon [Inclusion financière via le mobile money, expos," Working Papers hal-03614064, HAL.
    2. Kass-Hanna, Josephine & Lyons, Angela C. & Liu, Fan, 2022. "Building financial resilience through financial and digital literacy in South Asia and Sub-Saharan Africa," Emerging Markets Review, Elsevier, vol. 51(PA).
    3. Catia Batista & Pedro C. Vicente, 2018. "Is mobile money changing rural Africa? Evidence from a field experiment," NOVAFRICA Working Paper Series wp1805, Universidade Nova de Lisboa, Nova School of Business and Economics, NOVAFRICA.
    4. Aron, Janine, "undated". "'Leapfrogging': a Survey of the Nature and Economic Implications of Mobile Money," INET Oxford Working Papers 2017-02, Institute for New Economic Thinking at the Oxford Martin School, University of Oxford, revised Jan 2017.
    5. Naito, Hisahiro & Yamamoto, Shinnosuke, 2022. "Is better access to mobile networks associated with increased mobile money adoption? Evidence from the micro-data of six developing countries," Telecommunications Policy, Elsevier, vol. 46(6).
    6. Carlos Sakyi‐Nyarko & Ahmad Hassan Ahmad & Christopher J. Green, 2022. "Investigating the well‐being implications of mobile money access and usage from a multidimensional perspective," Review of Development Economics, Wiley Blackwell, vol. 26(2), pages 985-1009, May.
    7. Hisahiro Naito & Shinnosuke Yamamoto, 2022. "Is Better Access to Mobile Networks Associated with Increased Mobile Money Adoption? Evidence from the Micro-data of Six Developing Countries," Tsukuba Economics Working Papers 2022-001, Faculty of Humanities and Social Sciences, University of Tsukuba.
    8. Ky, Serge Stéphane & Rugemintwari, Clovis & Sauviat, Alain, 2021. "Friends or Foes? Mobile money interaction with formal and informal finance," Telecommunications Policy, Elsevier, vol. 45(1).
    9. Apeti, Ablam Estel, 2023. "Household welfare in the digital age: Assessing the effect of mobile money on household consumption volatility in developing countries," World Development, Elsevier, vol. 161(C).
    10. Ablam Estel Apeti, 2022. "Household welfare in the digital age: Assessing the effect of mobile money on household consumption volatility in developing countries," Post-Print hal-03819779, HAL.
    11. Kabengele, Christian & Hahn, Rüdiger, 2021. "Institutional and firm-level factors for mobile money adoption in emerging markets–A configurational analysis," Technological Forecasting and Social Change, Elsevier, vol. 171(C).
    12. Djahini-Afawoubo, Dossè Mawussi & Couchoro, Mawuli Kodjovi & Atchi, Fambari Kokou, 2023. "Does mobile money contribute to reducing multidimensional poverty?," Technological Forecasting and Social Change, Elsevier, vol. 187(C).
    13. Askar Ismailov & Albert Benson Kimaro & Hisahiro Naito, 2019. "The Effect of Mobile Money Usage on Borrowing, Saving, and Receiving Remittances: Evidence from Tanzania," Tsukuba Economics Working Papers 2019-002, Faculty of Humanities and Social Sciences, University of Tsukuba.
    14. Naito, Hisahiro & Ismailov, Askar & Kimaro, Albert Benson, 2021. "The effect of mobile money on borrowing and saving: Evidence from Tanzania," World Development Perspectives, Elsevier, vol. 23(C).
    15. Grohmann, Antonia & Klühs, Theres & Menkhoff, Lukas, 2018. "Does financial literacy improve financial inclusion? Cross country evidence," World Development, Elsevier, vol. 111(C), pages 84-96.
    16. Luc Jacolin & Joseph Keneck Massil & Alphonse Noah, 2021. "Informal sector and mobile financial services in emerging and developing countries: Does financial innovation matter?," The World Economy, Wiley Blackwell, vol. 44(9), pages 2703-2737, September.
    17. Yiping Huang & Xue Wang & Xun Wang, 2020. "Mobile Payment in China: Practice and Its Effects," Asian Economic Papers, MIT Press, vol. 19(3), pages 1-18, Fall.
    18. Joshua Blumenstock & Michael Callen & Tarek Ghani, 2018. "Why Do Defaults Affect Behavior? Experimental Evidence from Afghanistan," American Economic Review, American Economic Association, vol. 108(10), pages 2868-2901, October.
    19. Batista, Catia & Vicente, Pedro C., 2020. "Improving access to savings through mobile money: Experimental evidence from African smallholder farmers," World Development, Elsevier, vol. 129(C).
    20. Apeti, Ablam Estel & Edoh, Eyah Denise, 2023. "Tax revenue and mobile money in developing countries," Journal of Development Economics, Elsevier, vol. 161(C).

    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:hal:journl:hal-03622403. 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: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    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.