Law, mobile money drivers and mobile money innovations in developing countries

Abstract

This study investigates how the rule of law (i.e. law) modulates demand-and supply-side drivers of mobile money to influence mobile money innovations (i.e. mobile money accounts, the mobile phone used to send money and the mobile phone used to receive money) in developing countries. The following findings from Tobit regressions are established. First, from the demand-side linkages, law modulates: (i) bank accounts and automated teller machine (ATM) penetration for negative interactive relationships with mobile money innovations and (ii) bank sector concentration for a positive interactive relationship with mobile money accounts. Second, from supply-side linkages, law interacts with: (i) mobile subscriptions for a negative relationship with the mobile phone used to send money; (ii) mobile connectivity coverage for a negative nexus on the mobile phone used to receive money and (iii) mobile connectivity performance for a negative influence on the mobile phone used to send/receive money. Policy implications are discussed in the light of enhancing the rule of law as well as improving mobile phone subscription, connectivity and performance dynamics.

Mobile technology supply factors and mobile money innovation: Thresholds for complementary policies

“…The empirical strategy adopted by this study is consistent with contemporary literature on mobile money innovations that have adopted similar outcome variables (Lashitew et al, 2019;Asongu, 2020). Accordingly, this attendant literature is on the same wavelength with other strands of economic development literature that have not focused on the mobile money innovations as the outcome variable (Kumbhakar & Lovell, 2000;Koetter & Vins, 2008;Ariss, 2010;Coccorese & Pellecchia, 2010;Ajide, Raheem & Asongu, 2019).…”

Mobile technology supply factors and mobile money innovation: thresholds for complementary policies

“…The empirical strategy adopted by this study is consistent with contemporary literature on mobile money innovations that have adopted similar outcome variables (Lashitew et al, 2019;Asongu, 2020). Accordingly, this attendant literature is on the same wavelength with other strands of economic development literature that have not focused on the mobile money innovations as the outcome variable (Kumbhakar & Lovell, 2000;Koetter & Vins, 2008;Ariss, 2010;Coccorese & Pellecchia, 2010;Ajide, Raheem & Asongu, 2019).…”

“…Accordingly, in the study, the outcome variables are mobile money innovations which entail aspects of mobile banking such as mobile money accounts, the mobile phone used to send money and the mobile phone used to receive money (Firpo, 2009;Lashitew et al, 2019). The theoretical framework underlying the nexuses being examined in the present study can be articulated in three principal strands: (i) how bank accounts and mobile money innovation are connected; (ii) the free market model and (iii) the information asymmetry theory (Asongu, 2020). It is important to note that the first strand is consistent with the unique mobile subscription rate, mobile connectivity performance and mobile connectivity coverage; the second strand is in line with telecommunications (hence telecom) sector regulation while the third strand is consistent with all the four mobile money innovation supply factors considered for the study (i.e.…”

The role of mobile characteristics on mobile money innovations

“…To clarify this theoretical context, two strands are discussed. The two strands articulate: (i) the linkage between bank accounts and innovations in mobile banking and (ii) the information asymmetry theory (Asongu, 2020;Asongu & Odhiambo, 2022). The attendant strands are expanded in the same chronology as highlighted in the passages that follow.…”