Mobile Money: an instrument of Financial Development to reduce violent conflicts?

Alfred Nandnaba
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Alfred Nandnaba: UCA - Université Clermont Auvergne, CFE - CNRS-formation Entreprise - CNRS - Centre National de la Recherche Scientifique, LEO - Laboratoire d'Économie d'Orleans [2022-...] - UO - Université d'Orléans - UT - Université de Tours - UCA - Université Clermont Auvergne

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Abstract: This article uses a conceptual framework based on the capability approach and the impact analysis method called Entropy Balancing to examine the impact of mobile money adoption on armed conflict in 103 developing countries over the period 2000-2020. The results show that mobile money significantly reduces armed conflict by about 1.79 percentage points. The results are robust to several robustness tests, including alternative specifications and methods that capture reverse causality, dynamic and spillover effects. Heterogeneity analysis shows that the effect may vary by type of mobile money, level of development, duration of conflict, financial development, and geographic area. Finally, income, unemployment, inequality and consumption volatility are the main channels through which mobile money can reduce violent conflicts.

Keywords: Violent Conflicts; Mobile Money; Capability Approach; Entropy Balancing; Developing countries.; E26; F36; O11; O32 (search for similar items in EconPapers)
Date: 2024-06-14
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