Mobile Money-Driven Financial Inclusion and Financial Resilience in Sub-Saharan Africa: Insights from Cameroon

L’inclusion financière via le mobile money et résilience financière en Afrique Subsaharienne: cas du Cameroun

Patrick-Hervé Mbouombouo Mfossa ()
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Patrick-Hervé Mbouombouo Mfossa: CCAM - Centre Congolais Allemand de Microfinance - UPC - Université protestante au Congo

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Abstract: While there has been increasing interest in the economic effects of mobile money in Sub-Saharan Africa, there is little empirical literature on the role of mobile money in the nexus between financial inclusion and financial resilience. This paper uses the 2017 Global Findex 1,000 representative sample collected in Cameroon to examine how mobile money affects people's ability to face negative shocks by coming up with an emergency fund in due time. Our results indicate that access to this financial inclusion tool increases the average ability of being resilient during an economic emergency, but the magnitude of this effect depends on whether the treatment-effects model implemented controls for the endogeneity of mobile money adoption or not. Whereas the average resilience ability if no one in the treated and the overall population had access to a mobile money account is considerably higher when disregarding endogeneity (0.47 vs. 0.37 and 0.62 vs. 0.09 respectively), our results demonstrate that the increase in financial resilience ability due to mobile money adoption is higher when controlling for endogeneity (0.74 vs. 0.053 and 0.60 vs. 0.07 respectively). Thus, disregarding endogeneity tend to underestimate the positive effect of this digital financial inclusion tool

Keywords: financial inclusion; financial resilience; mobile money; endogenous treatment (search for similar items in EconPapers)
Date: 2019-10-21
Note: View the original document on HAL open archive server: https://hal.science/hal-03622403
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Published in En quête d’impact: la finance inclusive au service des Objectifs du Développement Durable, ADA (Appui au Développement Autonome), Oct 2019, Ouagadougou, Burkina Faso

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