The Role of Economic Growth in Modulating Mobile Connectivity Dynamics for Financial Inclusion in Developing Countries

Abstract

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.

Health performance and economic growth in sub-Saharan Africa: new evidence based on quantile regressions

“…First, mobile money innovations have been documented to drive economic growth and inclusive development in Africa (Asongu & Odhiambo, 2022). Hence, a positive sign on economic growth is anticipated.…”

Note From the Editor

“…In our final article this summer, Asongu and Odhiambo (2023) investigate the effects of mobile phone and internet penetration on foreign direct investment in Sub-Saharan Africa (see also Asongu and Odhiambo 2022). This piece is followed by two in-depth book reviews addressing humanitarian concerns in China (Schimmel 2023) and research on poverty and low-income family life during the COVID-19 pandemic (Thakur 2023).…”

Note From the Editor

“…In our fourth article, Asongu and Odhiambo (2022) look at how economic growth influences mobile money innovations and associated mobile connectivity dynamics (like the availability and functionality of mobile banks or other money accounts and the widespread availability of cellphones) in developing countries. Mobile phones have been shown to be a significant enabler of all 17 sustainable development goals.…”