Connecting the poor: the internet, mobile phones and financial inclusion in Africa

2018 ◽  
Vol 20 (6) ◽  
pp. 568-581 ◽  
Author(s):  
Olaniyi Evans
Keyword(s):  
Mobile Phones ◽  
Empirical Studies ◽  
Financial Inclusion ◽  
The Internet ◽  
African Countries ◽  
Macroeconomic Factors ◽  
Content Type ◽  
Developed Economies ◽  
Causality Tests ◽  
The Relationship

Purpose The increased adoption of internet-enabled phones in Africa has caused much speculation and optimism concerning its effects on financial inclusion. Policymakers, the media and various studies have all flaunted the potentials of internet and mobile phones for financial inclusion. An important question therefore is “Can the internet and mobile phones spur the inclusion of the financially excluded poor? This study therefore aims to examine the relationship and causality between internet, mobile phones and financial inclusion in Africa for the 2000-2016 period. Design/methodology/approach The empirical analysis followed these three steps: examination of the stationarity of the variables; testing for the cointegration; and evaluation of the effects of the internet and mobile phones on financial inclusion in Africa for the 2000-2016 period using three outcomes of panel FMOLS approach and Granger causality tests. Findings The empirical evidence shows that internet and mobile phones have significant positive relationship with financial inclusion, meaning that rising levels of internet and mobile phones are associated with increased financial inclusion. There is also uni-directional causality from internet and mobile phones to financial inclusion, implying that internet and mobile phones cause financial inclusion. The study also shows that macroeconomic factors such as capital formation, primary enrollment, bank credit, broad money, population growth, remittances, agriculture and interest rate, as well as institutional factors such as regulatory quality are important underlying factors for financial inclusion in Africa. Originality/value In the literature, there is a dearth of research on the internet, mobile phones and financial inclusion, especially in Africa. Most of the related studies are conceptual and micro-based, with little empirical attention to the relationship and causality between internet, mobile phones and financial inclusion. In fact, this dearth of rigorous empirical studies has been attributed as the main cause of inadequate policy guidance in enhancing information communication technologies (Roycroft and Anantho, 2003), despite saturation levels in developed economies. This study fills the gap by evaluating the effects of the Internet and mobile phones on financial inclusion for 44 African countries for the 2000-2016 period.

Digital financial inclusion, informal economy and poverty reduction in Africa

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ikechukwu Kelikume
Keyword(s):  
Mobile Phones ◽  
Informal Economy ◽  
Poverty Reduction ◽  
Positive Relationship ◽  
Financial Inclusion ◽  
Internet Usage ◽  
The Internet ◽  
Content Type ◽  
Significant Positive Relationship ◽  
The Relationship

Purpose This paper aims to examine the relationship between mobile phones, the internet, financial inclusion, the informal economy and poverty reduction. Design/methodology/approach The study examines the relationship between mobile phones, the internet, financial inclusion, the informal economy and poverty reduction using the system generalized method of moments approach and a panel data set of 42 African countries for the period 1995–2017. Findings The study shows that mobile penetration and internet usage have significant positive relationship with the informal sector. Financial inclusion has significant effects, meaning that increased financial inclusion is associated with a developed informal economy. Also, mobile penetration and internet usage play significant roles in the relationship between financial inclusion and the informal economy. Further, mobile penetration and internet usage have a significant positive relationship with poverty reduction. Similarly, financial inclusion has significant effects, meaning higher financial inclusion is associated with increased poverty reduction. The informal economy also has significant effects, suggesting that the development of the informal economy is associated with poverty reduction. Originality/value Most importantly, mobile penetration, internet usage and financial inclusion play significant roles in the link between the informal economy and poverty reduction.

Corruption and firm-level productivity: greasing or sanding effect?

2018 ◽  
Vol 14 (3) ◽  
pp. 222-241 ◽  
Author(s):  
Edward Bbaale ◽  
Ibrahim Mike Okumu
Keyword(s):  
Information Dissemination ◽  
Empirical Studies ◽  
Public Information ◽  
Empirical Literature ◽  
African Countries ◽  
Firm Level ◽  
Data Set ◽  
Content Type ◽  
Red Tape ◽  
The Relationship

Purpose Corruption was ranked among the top five biggest obstacles affecting the operation of enterprises in Africa and was rated as a severe obstacle by close to 40 percent of firms in the sample. Consequently, the purpose of this paper is to investigate the relationship between corruption and firm level productivity. Design/methodology/approach This paper uses the Enterprise Survey Data Set of the World Bank and employs an instrumental variable (IV) approach to deal with the potential endogeneity of corruption in a productivity equation. The authors use industry-country averages of the bribe tax and time tax as well as a dummy of female ownership as IVs. Findings Using three different measures of corruption, the authors find evidence that corruption “sands the wheels of commerce” and hence dampens firm-level productivity even when the endogeneity of corruption is controlled for. The authors find no evidence to support the trade-off between bribe payments and the red tape suggesting that government officials deliberately use bureaucracy as a mechanism of trapping the most productive firms that can afford to pay higher bribes. Hence this study lends no support to the “greasing” hypothesis. Practical implications The results thus suggest that in the second best choice environment firms are still not better off paying bribes rather mitigating corruption could be ideal. Therefore alongside existing regulatory corruption mitigants in the respective African countries, the paper suggests that government through public information dissemination ought to enlighten firms that corruption is not productivity enhancing. Thus firms are better-off evading corruption tendencies than propagating them. Originality/value The contribution to empirical literature is that much of the empirical studies have overly concentrated on Europe and Asia and with very limited evidence available for African countries. Therefore in terms of extending the work of McAuthar and Teal (2002) and Fisman and Svensson (2007), the authors argue that by using a new data set stretching from 2006 to as recent as 2017 the paper is rightly placed to make an empirical contribution about the relationship between corruption and firm-level productivity.

Re-examination of the internet financial reporting determinants

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Foued Khlifi
Keyword(s):  
Financial Reporting ◽  
Research Methodology ◽  
Fuzzy System ◽  
Empirical Studies ◽  
The Internet ◽  
Corporate Disclosure ◽  
Content Type ◽  
Genetic Fuzzy System ◽  
Starting Point ◽  
The Relationship

PurposeThe purpose of this paper is to shed light on the relationship between the Internet Financial Reporting (IFR) levels and corporate characteristics. It is assumed that the relationship between the disclosure level and its determinants is known. Nevertheless, the results of the empirical studies confirm that it is a naive assumption. As a result, the author suggests refusing the conventional methods of econometric analysis.Design/methodology/approachThe research methodology consisted of four stages: First, the author tried to select the “best” model using the Akaike Information Criterion (AIC). Second, the author checked out the stability of the relationship between corporate disclosure level and its determinants. Third, the regression analysis was used. Finally, the author proposed a “genetic-fuzzy system” for studying the determinants of corporate disclosure. The firms' yearly data collected consisted of a random sample of 152 Tunisian companies' websites.FindingsThe results show that the variables that should be used to explain the level of IFR are firm size, ownership concentration, firm performance and liquidity. The Chow forecast test shows that there is a significant and large difference between the actual and the predicted values. Consequently, the author suggests using non-parametric methods, particularly a methodology based on fuzzy logic concepts and genetic algorithms. This technique would allow the author to discover the true form of the relationship between the disclosure level and its determinants. Regarding the hypotheses of this study, the findings of the “genetic-fuzzy system” validate all the hypotheses. Indeed, the arguments of the agency theory, the signaling theory, and the political cost hypothesis were supported using the “genetic-fuzzy system.”Originality/valueThe originality of the paper lies in providing a new research methodology based on several statistical tools for dealing with an important research topic in accounting and finance, i.e. the determinants of IFR. The results of this study can be considered as a starting point to develop a unified methodology.

Perceptions of time at work

2016 ◽  
Vol 45 (1) ◽  
pp. 29-50 ◽  
Author(s):  
Aristides Isidoro Ferreira ◽  
Joana Diniz Esteves
Keyword(s):  
Gender Differences ◽  
Design Methodology ◽  
Internet Use ◽  
The Internet ◽  
Content Type ◽  
Future Studies ◽  
Work Related ◽  
Phone Calls ◽  
Working Day ◽  
The Relationship

Purpose – Activities such as making personal phone calls, surfing on the internet, booking personal appointments or chatting with colleagues may or may not deviate attentions from work. With this in mind, the purpose of this paper is to examine gender differences and motivations behind personal activities employees do at work, as well as individuals’ perception of the time they spend doing these activities. Design/methodology/approach – Data were obtained from 35 individuals (M age=37.06 years; SD=7.80) from a Portuguese information technology company through an ethnographic method including a five-day non-participant direct observation (n=175 observations) and a questionnaire with open-ended questions. Findings – Results revealed that during a five-working-day period of eight hours per day, individuals spent around 58 minutes doing personal activities. During this time, individuals engaged mainly in socializing through conversation, internet use, smoking and taking coffee breaks. Results revealed that employees did not perceive the time they spent on non-work realted activities accurately, as the values of these perceptions were lower than the actual time. Moreover, through HLM, the findings showed that the time spent on conversation and internet use was moderated by the relationship between gender and the leisure vs home-related motivations associated with each personal activity developed at work. Originality/value – This study contributes to the literature on human resource management because it reveals how employees often perceive the time they spend on non-work related activities performed at work inaccurately. This study highlights the importance of including individual motivations when studying gender differences and personal activities performed at work. The current research discusses implications for practitioners and outlines suggestions for future studies.

scholarly journals Creating relationship continuity across projects in the construction industry

IMP Journal ◽  
2017 ◽  
Vol 11 (2) ◽  
pp. 207-229 ◽  
Author(s):  
Malena Ingemansson Havenvid ◽  
Elsebeth Holmen ◽  
Åse Linné ◽  
Ann-Charlott Pedersen
Keyword(s):  
Construction Industry ◽  
Empirical Studies ◽  
Mutual Orientation ◽  
Content Type ◽  
Construction Firms ◽  
Relationship Continuity ◽  
Time Period ◽  
Strategy Types ◽  
The Relationship ◽  
Over Time

Purpose The purpose of this paper is to investigate the relationship continuity across projects among actors in the construction industry, and to discuss why and how such continuity takes place. Design/methodology/approach The authors draw on the results from four in-depth case studies illustrating different strategies for pursuing relationship continuity. The results are analysed and discussed in light of the oft-mentioned strategies suggested by Mintzberg (1987): emergent, deliberate and deliberately emergent strategies. Furthermore, the ARA-model is used to discuss why the relationship continuity strategies are pursued, and which factors might enable and constrain the relationship continuity. Findings The main findings are twofold. First, the authors found that the strategy applied for pursuing relationship continuity may, in one-time period, contain one type of strategy or a mix of strategy types. Second, the type of strategy may evolve over time, from one type of strategy being more pronounced in one period, to other strategies being more pronounced in later periods. The strategies applied by construction firms and their counterparts can thus contain elements of emergent, deliberate and deliberately emergent strategies, in varying degrees over time. It is also shown that the strategies of the involved actors co-evolve as a result of interaction. Also, the main reasons for pursuing continuity appear to lie in the re-use and development of important resources and activities across projects to create efficiency and the possibility to develop mutual orientation, commitment and trust over time, and thus reduce uncertainty. Research limitations/implications Further empirical studies are needed to support the findings. For managers, the main implication is that relationship continuity can arise as part of an emerging interaction pattern between firms or as part of a planned strategy, but that elements of both might be needed to sustain it. Originality/value The authors combine Mintzberg’s strategy concepts with the ARA-model to bring new light to the widely debated issue of discontinuity and fragmentation in the construction industry.

Banking technology and cashless economy in selected Sub-Saharan African countries: does education matter?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ese Urhie ◽  
Ogechi Chiagozie Amonu ◽  
Chiderah Mbah ◽  
Olabanji Olukayode Ewetan ◽  
Oluwatoyin Augustina Matthew ◽  
...  
Keyword(s):  
Panel Study ◽  
Positive Sign ◽  
African Countries ◽  
Content Type ◽  
Bank Branches ◽  
Mobile Cellular ◽  
Sub Saharan ◽  
The Relationship ◽  
Ssa Countries ◽  
Practical Implications

Purpose This study aims to analyze the effect of banking technology [automated teller machine (ATM) and mobile cellular devices (MOBs)] and other traditional factors on the level of currency in circulation for a sample of 21 selected sub-Saharan African (SSA) countries. It also assessed the mitigating effect of education on the relationship between banking technology and the cashless economy. Design/methodology/approach The study used a panel data approach to design a cashless economy model with banking technology – ATM and MOBs – as well as their interaction with education as regressors. Findings This study finds that MOB is significant for promoting a cashless economy, whereas ATM is insignificant in sample SSA countries. The level of education and the number of bank branches were also found to be significant in promoting a cashless economy. The interaction between education and ATM was insignificant but negatively signed, whereas that between education and MOB was significant but had a positive sign. Research limitations/implications Non-availability of data restricted this work to a panel study of selected SSA countries. Subsequent studies should consider single-country case studies. Practical implications Findings from the study imply that for banking technology to drive a cashless economy effectively, education has to be improved. Originality/value The ratio of cash in circulation to total money supply was used as a measure of the cashless economy. The study also evaluated the moderating effect of education on banking technology.

Determinants of the firm performance of returnee entrepreneurs in Somalia: the effects of external environmental conditions

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohamed-Abdullahi Mohamed ◽  
Asmat-Nizam Abdul-Talib ◽  
AfifahAlwani Ramlee
Keyword(s):  
Firm Performance ◽  
Conceptual Framework ◽  
Empirical Studies ◽  
Theoretical Background ◽  
Future Research ◽  
African Countries ◽  
Content Type ◽  
Somali Diaspora ◽  
Post Conflict ◽  
Perceived Environmental Uncertainty

Purpose This study aims to examine the role of returning Somali diaspora entrepreneurs on firm performance and their perceived environmental obstacles. Design/methodology/approach The paper draws on a broad literature review and covers a theoretical background to develop a research framework. It presents several propositions to be empirically tested to determine the influence of returnee entrepreneurs’ success and the challenges they face in the process. Findings The paper offers an overview of how Somali diaspora returnee entrepreneurs can use their resources to succeed in their business and the possible environmental uncertainties that could hinder them. The study highlights some under-researched areas and provides future research directions. Research limitations/implications A research investigation is needed to test the proposed conceptual framework empirically. Further research is also recommended to use other predictors when investigating the perceived environmental uncertainty faced by returnee entrepreneurs. Practical implications In the diaspora entrepreneurship literature, returnee entrepreneurs in post-conflict African countries did not get enough attention. Hence, the study will contribute theoretically to the literature. Originality/value The paper provides a conceptual framework that will help understand returnee entrepreneurs in post-conflict states in Africa, paving the way for empirical studies on the topic.

Shadow economy in Africa: how relevant is financial inclusion?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Folorunsho M. Ajide
Keyword(s):  
Shadow Economy ◽  
Financial Inclusion ◽  
Sub Saharan Africa ◽  
African Countries ◽  
Content Type ◽  
Development Indicators ◽  
Panel Data Estimation ◽  
Sub Saharan ◽  
Data Estimation ◽  
Toda And Yamamoto

Purpose This study aims to investigate the possible relationship between financial inclusion and shadow economy in selected African countries. Design/methodology/approach The study uses panel data estimation technique and Toda and Yamamoto causality approach. The data of selected African counties over a period of 2005–2015 are sourced from World Bank Development Indicators, International Monetary Fund International Financial statistics database and International Country Risk Guide. Findings The results show that financial inclusion reduces the size of shadow economy. The causality results show that there is a unidirectional causality moving from financial inclusion to shadow economy. The results demonstrate that a country with lower level of corruption and higher level of growth can benefit more in reducing the size of shadow economy through financial inclusion. Originality/value This study provides the first evidence of the link between financial inclusion and shadow economy from the Sub-Saharan Africa perspective. The study suggests that financial inclusion may be useful in affecting the size of shadow economy in Africa.

scholarly journals Macroeconomic Factors and Equity Prices: An Empirical Investigation by Using ARDL Approach

2008 ◽  
Vol 47 (4II) ◽  
pp. 501-513 ◽  
Author(s):  
Arshad Hasan ◽  
Zafar Mueen Nasir
Keyword(s):  
Empirical Studies ◽  
Testing Procedure ◽  
Bounds Testing ◽  
Macroeconomic Factors ◽  
Equity Prices ◽  
Macroeconomic Variables ◽  
Long Run ◽  
Ardl Approach ◽  
The Impact ◽  
The Relationship

The relationship between macroeconomic variables and the equity prices has attracted the curiosity of academicians and practitioners since the publication of seminal paper of Chen, et al. (1986). Many empirical studies those tested the relationship reveal that asset pricing theories do not properly identify macroeconomic factors that influence equity prices [Roll and Ross (1980); Fama (1981); Chen, et al. (1986); Hamao (1986); Faff (1988); Chen (1991); Maysami and Koh (2000) and Paul and Mallik (2001)]. In most of these studies, variable selection and empirical analyses is based on economic rationale, financial theory and investors’ intuition. These studies generally apply Eagle and Granger (1987) procedure or Johanson and Jusilieus (1990, 1991) approach in Vector Auto Regressor (VAR) Framework. In Pakistan, Fazal (2006) and Nishat (2001) explored the relationship between macroeconomic factors and equity prices by using Johanson and Jusilieus (1990, 1991) procedure. The present study tests the relationship between macroeconomic variables such as inflation, industrial production, oil prices, short term interest rate, exchange rates, foreign portfolio investment, money supply and equity prices by using Auto Regressive Distributive Lag (ARDL) bounds testing procedure proposed by Pesaran, Shin, and Smith (1996, 2001). The ARDL approach in an errorcorrection setting has been widely applied to examine the impact of macroeconomic factors on economic growth but it is strongly underutilised in the capital market filament of literature. This methodology has a number of advantages over the other models. First, determining the order of integration of macroeconomic factors and equity market returns is not an important issue here because the Pesaran ARDL approach yields consistent estimates of the long-run coefficients that are asymptotically normal irrespective of whether the underlying regressors are I(0) or I(1) and of the extent of cointegration. Secondly, the ARDL approach allows exploring correct dynamic structure while many econometric procedures do not allow to clearly distinguish between long run and short run relationships.

Collective action among rural poor

2019 ◽  
Vol 37 (1) ◽  
pp. 20-43
Author(s):  
George Okello Candiya Bongomin ◽  
John C. Munene ◽  
Joseph Mpeera Ntayi ◽  
Charles Akol Malinga
Keyword(s):  
Collective Action ◽  
Financial Institutions ◽  
Financial Intermediation ◽  
Financial Inclusion ◽  
Content Type ◽  
Mediating Role ◽  
The Poor ◽  
Bootstrap Approach ◽  
The Relationship

PurposeThe purpose of this paper is to establish the mediating role of collective action in the relationship between financial intermediation and financial inclusion of the poor in rural Uganda.Design/methodology/approachThe paper uses structural equation modeling (SEM) through bootstrap approach constructed using analysis of moment structures to test for the mediating role of collective action in the relationship between financial intermediation and financial inclusion of the poor in rural Uganda. Besides, the paper adopts Baron and Kenny’s (1986) approach to establish whether conditions for mediation by collective action exist.FindingsThe results revealed that collective action significantly mediates the relationship between financial intermediation and financial inclusion of the poor in rural Uganda. The findings further indicated that the mediated model had better model fit indices than the non-mediated model under SEM bootstrap. Furthermore, the results showed that both collective action and financial intermediation have significant and direct impacts on financial inclusion of the poor in rural Uganda. Therefore, the findings suggest that the presence of collective action boost financial intermediation for improved financial inclusion of the poor in rural Uganda.Research limitations/implicationsThe study used quantitative data collected through cross-sectional research design. Further studies through the use of interviews could be adopted in future. Methodologically, the study adopted use of SEM bootstrap approach to establish the mediating effect of collective action. However, it ignored the Sobel’s test and MedGraph methods. Future studies could adopt the use of alternative methods of Sobel’s test and MedGraph. Additionally, the study focused only on semi-formal financial institutions. Hence, further studies may consider the use of data collected from formal and informal institutions.Practical implicationsPolicy makers and managers of financial institutions should consider the role of collective action in promoting economic development, especially in developing countries. They should create structures and design financial services and products that promote collective action among the poor in rural Uganda.Originality/valueAlthough several scholars have articulated financial inclusion based on both the supply and demand side factors, this is the first study to test the mediating role of collective action in the relationship between financial intermediation and financial inclusion of the poor in rural Uganda using SEM bootstrap approach. Theoretically, the study combines the role of collective action with financial intermediation to promote financial inclusion. Financial intermediation theory ignores the role played by collective action in the intermediation process between the surplus and deficit units.

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