nep-mfd New Economics Papers
on Microfinance
Issue of 2023‒05‒22
five papers chosen by
Rachita Gulati,  IIT Roorkee


  1. Entrepreneurship in developing countries: can mobile money play a role? By Ablam Estel Apeti; Jean-Louis Combes; Eyah Denise Edoh
  2. The role of mobile money innovations in transforming unemployed women to self-employed women in sub-Saharan Africa By Simplice A. Asongu; Sara le Roux
  3. Microfinance institutions and female entrepreneurship in Sub-Saharan Africa: avoidable female unemployment thresholds By Asongu, Simplice A; Odhiambo, Nicholas M
  4. Bank accounts, bank concentration and mobile money innovations By Simplice A. Asongu; Nicholas M. Odhiambo
  5. Are Digital and Traditional Financial Services Taxed the Same? A Comprehensive Assessment of Tax Policies in Nine African Countries By Niesten, Hannelore

  1. By: Ablam Estel Apeti (LEO - Laboratoire d'Économie d'Orleans [2022-...] - UO - Université d'Orléans - UT - Université de Tours - UCA - Université Clermont Auvergne); Jean-Louis Combes (LEO - Laboratoire d'Économie d'Orleans [2022-...] - UO - Université d'Orléans - UT - Université de Tours - UCA - Université Clermont Auvergne); Eyah Denise Edoh (LEO - Laboratoire d'Économie d'Orleans [2022-...] - UO - Université d'Orléans - UT - Université de Tours - UCA - Université Clermont Auvergne)
    Abstract: This paper examines the impact of mobile money adoption on entrepreneurship in a large panel of 105 developing countries over the period 2006-2020 using entropy balancing method. Results indicate that countries with mobile money have higher entrepreneurial activities. Specifically, countries with mobile money experienced an increase of 0.35 percentage points in their entrepreneurial activity compared to nonmobile money countries. This result is robust to several robustness tests, including altering the definition of mobile money, the definition of entrepreneurship, placebo tests, adding additional control variables, changing the sample design, and alternative estimation methods such as panel fixed effects, and the GMM system. Furthermore, the heterogeneity tests performed indicate the sensitivity of our results to the intensity of mobile money use, some structural factors such as democracy, conflict, regulatory quality, corruption, financial development, internet, and education.
    Keywords: Mobile money, entrepreneurship, entropy balancing, developing countries
    Date: 2023–04–25
    URL: http://d.repec.org/n?u=RePEc:hal:wpaper:hal-04081304&r=mfd
  2. By: Simplice A. Asongu (Yaounde, Cameroon); Sara le Roux (Oxford Brookes University, Oxford, UK)
    Abstract: The study examines how mobile money innovations transform unemployed women to self-employed women. The empirical evidence is based on interactive quantile regressions focusing on data in 44 countries from sub-Saharan Africa for the period 2004 to 2018. The hypothesis that mobile money innovations transform female unemployment to female self-employment is tested. Eight mobile money innovation dynamics presented in four categories are employed. Three main common findings are apparent from interactions between female unemployment, eight mobile money innovation dynamics and female self-employment: (i) the investigated hypothesis is valid exclusively at the top quantiles of female self-employment; (ii) the net effects are consistently negative and (iii) the corresponding conditional or interactive effects upon which the net effects are based are consistently positive. This is an indication that critical masses at which money innovation innovations have an overall positive net effect on female self-employment are apparent. The corresponding mobile money innovation policy thresholds at which the net effects on female self-employment change from negative to positive are provided. Policy implications are discussed.
    Keywords: Mobile phones; financial inclusion; women; inequality; sub-Saharan Africa
    JEL: G20 O40 I10 I20 I32
    Date: 2023–01
    URL: http://d.repec.org/n?u=RePEc:agd:wpaper:23/016&r=mfd
  3. By: Asongu, Simplice A; Odhiambo, Nicholas M
    Abstract: The present study contributes to the extant literature by assessing how microfinance institutions (MFIs) affect female entrepreneurship, contingent on female unemployment levels. The study focuses on 44 countries in sub-Saharan Africa (SSA) for the period 2004 to 2018. The empirical evidence is based on interactive quantile regressions, which put emphasis on nations with high, low and intermediate levels of business constraints. The analysis is tailored to provide avoidable female unemployment levels in the implementation of policies designed for MFIs to promote female business ownership. The hypotheses that MFIs are favorable for female business owners and some critical rates of female unemployment should be avoided in order for the favorable incidence to be maintained is exclusively valid in the 10th quantiles of the cost of business by females and time to start-up a business by females. Policy implications are discussed. This study has complemented the extant literature by providing actionable female unemployment critical masses that governments can act upon in tailoring the nexus between the relevance of MFIs in the doing of business by females.
    Keywords: Africa; Microfinance; Gender; Inclusive development
    Date: 2023–04
    URL: http://d.repec.org/n?u=RePEc:uza:wpaper:29948&r=mfd
  4. By: Simplice A. Asongu (Yaounde, Cameroon); Nicholas M. Odhiambo (Pretoria, South Africa)
    Abstract: The present study investigates how increasing bank accounts and bank concentration affect mobile money innovations in 148 countries. It builds on scholarly and policy concerns in the literature that increasing bank accounts may not be having the desired effects on financial inclusion on the one hand and on the other, that bank concentration which is a proxy for market power is a relevant mobile money innovation demand factor. The empirical evidence is based on Tobit regressions. From the findings, it is apparent that boosting bank accounts is positively related to the three mobile money innovations (i.e. mobile bank accounts and the mobile phone used to send money). Moreover, some critical levels of bank account penetration require complementary policies in order to maintain the positive relationship between boosting bank accountsand positive outcomes in terms of money mobile innovations.Conversely, financial inclusion in terms of the three mobile money innovations is not significantly apparent upon enhancing bank concentration. Policy implications are discussed in the light of the provided thresholds for complementary policies.
    Keywords: Mobile money; technology; diffusion; financial inclusion; inclusive innovation, information asymmetry
    JEL: D10 D14 D31 D60 O30
    Date: 2023–01
    URL: http://d.repec.org/n?u=RePEc:agd:wpaper:23/019&r=mfd
  5. By: Niesten, Hannelore
    Abstract: Several African countries have introduced taxes on digital financial services (DFS) during the past decade. Given the size and rapid growth of the telecom and DFS sector, DFS taxation is considered an opportunity to broaden the government’s revenue base. These recent developments need to be considered alongside the framework for taxation of traditional financial services (TFS) delivered by banks and other formal financial institutions – such as credit unions, insurance companies and microfinance institutions. The working paper analyses key legislative, tax and regulatory policy instruments, comparing the tax framework in nine countries in Africa: Burundi, Côte d’Ivoire, Ghana, Kenya, Rwanda, South Sudan, Tanzania, Uganda and Zimbabwe. Summary of Working Paper 162 by Hannelore Niesten.
    Keywords: Finance,
    Date: 2023
    URL: http://d.repec.org/n?u=RePEc:idq:ictduk:17941&r=mfd

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