Open AccessTHE ROLE OF ECONOMIC GROWTH IN MODULATING MOBILE CONNECTIVITY DYNAMICS FOR FINANCIAL INCLUSION IN DEVELOPING COUNTRIES
Author(s) -
Asongu Simplice A.,
Odhiambo Nicholas M.
Publication year - 2022
Publication title -
world affairs
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.159
H-Index - 14
ISSN - 1940-1582
DOI - 10.1177/00438200221104515
Subject(s) - mobile phone , mobile payment , financial inclusion , gross domestic product , tobit model , developing country , business , money supply , broad money , economics , monetary economics , finance , financial services , engineering , telecommunications , economic growth , interest rate , econometrics , payment
This study establishes economic growth needed for supply‐side mobile money drivers in developing countries to be positively related to mobile money innovations in the perspectives of mobile money accounts, the mobile phone used to send money, and the mobile phone used to receive money. The empirical evidence is based on Tobit regressions. For the negative net relationships that are computed, minimum economic growth thresholds are established above which the net negative relationships become net positive relationships. The following minimum economic growth rates are required for nexuses between supply‐side mobile money drivers and mobile money innovations to be positive: (i) 6.109 percent (6.193%) of Gross Domestic Product (GDP) growth for mobile connectivity performance to be positively associated with the mobile phone used to send (receive) money and (ii) 4.590 percent (4.259%) of GDP growth for mobile connectivity coverage to be positively associated with the mobile phone used to send (receive) money .