Threshold effect of banking on income inequalities in developing countries: the importance of mobile money

Boniface Epo (), Jules Nana Djomo (), Mark Tangwa () and Éric Obama Obama ()
Additional contact information
Boniface Epo: University of Yaoundé II, Cameroon
Jules Nana Djomo: University of Yaoundé II, Cameroon
Mark Tangwa: University of Yaoundé II, Cameroon
Éric Obama Obama: University of Yaoundé II, Cameroon

No 23/073, Working Papers of the African Governance and Development Institute. from African Governance and Development Institute.

Abstract: This study investigates the role that of mobile money on the effect of banking on income inequalities on a panel of 105 developing countries over a period from 1990-2019. We use the system GMMs estimator to examine this relationship for income inequality before as well as after taxes and transfers. Results show that increased in banking contributes to the upsurge in income inequalities in developing countries. Likewise, an increase in bank borrowing also contributes to an increase in income inequality in developing countries. These results were robust to spatial analysis for Sub-Saharan Africa and Latin America and the Caribbean. Policy enactment wise, developing countries should ameliorate mobile money services and access points to significantly reduce inequality.

Keywords: Mobile banking; developing countries; poverty; inequality (search for similar items in EconPapers)
JEL-codes: G20 I10 I20 I32 O40 (search for similar items in EconPapers)
Pages: 27
Date: 2023-01
New Economics Papers: this item is included in nep-pay
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.afridev.org/RePEc/agd/agd-wpaper/Thresh ... loping-countries.pdf Revised version, 2023 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:agd:wpaper:23/073

Access Statistics for this paper

More papers in Working Papers of the African Governance and Development Institute. from African Governance and Development Institute. Contact information at EDIRC.
Bibliographic data for series maintained by Asongu Simplice ().