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On financial innovation in developing countries: The determinants of mobile banking and financial development in Africa
[De l'innovation financière dans les pays en développement : les déterminants du développement de la banque/finance mobile en Afrique]

Author

Listed:
  • Christian-Lambert Nguena

    (FSEG - Faculty of Economics and Management - University of Dschang, DYE - Dynamic Young Economists - University of Dschang)

Abstract

This study addresses the question of financial innovation in developing countries by focusing on the determinants of mobile banking development in Africa. Data on mobile banking across countries is partially constructed by the author, to which is applied panel data and cross-sectional econometric technics, to investigate the determinants of mobile banking development. Statistical analysis reveals that there is a positive link between the different proxies of mobile banking and an indicator of mobile banking development using the principal component analysis technique is constructed. Overall, the estimation of the four models highlights the following determinants: human capital development, credible monetary policy, infrastructure development, remittances facilitation, urbanization, trade openness and the facilitation of access to domestic credit from the banking sector. Also, the results of our robustness check are uncontroversial. A general recommendation to African governments is that they should pursue good performance in the light of the determinants highlighted above by implementing specific and well conditioned economic policies.

Suggested Citation

  • Christian-Lambert Nguena, 2019. "On financial innovation in developing countries: The determinants of mobile banking and financial development in Africa [De l'innovation financière dans les pays en développement : les déterminants," Post-Print hal-04228946, HAL.
    • Handle: RePEc:hal:journl:hal-04228946
    DOI: 10.3917/jie.029.0069
    Note: View the original document on HAL open archive server: https://hal.science/hal-04228946
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    References listed on IDEAS

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    1. Jenny C. Aker & Isaac M. Mbiti, 2010. "Mobile Phones and Economic Development in Africa," Journal of Economic Perspectives, American Economic Association, vol. 24(3), pages 207-232, Summer.
    2. Amina Abdinoor & Ulingeta O.L. Mbamba, 2017. "Factors influencing consumers’ adoption of mobile financial services in Tanzania," Cogent Business & Management, Taylor & Francis Journals, vol. 4(1), pages 1392273-139, January.
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    Cited by:

    1. Gnangnon, Sèna Kimm, 2021. "Effect of poverty on financial development: Does trade openness matter?," The Quarterly Review of Economics and Finance, Elsevier, vol. 82(C), pages 97-112.
    2. Dai Thich Phan, 2020. "I have seen the future, and it rings - What we know about mobile banking research," Theory Methodology Practice (TMP), Faculty of Economics, University of Miskolc, vol. 16(02), pages 69-79.
    3. Timilsina,Govinda R. & Sahoo,Pravakar & Dash,Ranjan Kumar, 2022. "Why Do Indian States Differ in Their Infrastructure Development ?," Policy Research Working Paper Series 10086, The World Bank.

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    More about this item

    Keywords

    Mobile Finance and Banking; Africa; Principal Component Analysis; Financial Innovation; Financial Inclusion;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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