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on Microfinance |
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Issue of 2024–01–08
two papers chosen by Marco Novarese, Università degli Studi del Piemonte Orientale |
| By: | Boniface Ngah EPO (University of Yaoundé II, Cameroon); Jules Médard NANA DJOMO (University of Yaoundé II, Cameroon); Mark Wiykiynyuy TANGWA (University of Yaoundé II, Cameroon); Éric Dieudonné OBAMA OBAMA (University of Yaoundé II, Cameroon) |
| 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 |
| JEL: | G20 O40 I10 I20 I32 |
| Date: | 2023–01 |
| URL: | https://d.repec.org/n?u=RePEc:exs:wpaper:23/073 |
| By: | Boniface Ngah EPO (University of Yaoundé II, Cameroon); Jules Médard NANA DJOMO (University of Yaoundé II, Cameroon); Mark Wiykiynyuy TANGWA (University of Yaoundé II, Cameroon); Éric Dieudonné OBAMA OBAMA (University of Yaoundé II, Cameroon) |
| 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 |
| JEL: | G20 O40 I10 I20 I32 |
| Date: | 2023–01 |
| URL: | https://d.repec.org/n?u=RePEc:agd:wpaper:23/073 |