Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/173612
Authors: 
Asongu, Simplice
Nwachukwu, Jacinta C.
Year of Publication: 
2017
Series/Report no.: 
AGDI Working Paper WP/17/006
Abstract: 
This study assesses the role of ICT (internet and mobile phone penetration) in complementing financial sector development (financial formalization and informalization) for financial access. The empirical evidence is based on Generalised Method of Moments with 53 African countries for the period 2004-2011. The following findings are established from linkages between ICT, financial sector development and financial activity. First, the interaction between ICT and financial formalization (informalization) decreases (increases) financial activity. Second, with regards to net effects, the expected signs are established for the most part. In spite of the negative marginal effects from financial informalization, the overall net effects are positive. Third, the potentially appealing interaction between ICT and informalization produces positive thresholds that are within ranges. Policy implications are discussed in three main strands. They include implications for (i) mobile/internet banking; (ii) a quiet life and (iii) ICT in reducing information asymmetry and surplus liquidity.
Subjects: 
Allocation efficiency
Financial sector development
ICT
JEL: 
G20
G29
L96
O40
O55
Document Type: 
Working Paper

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