This paper analyzes the actual problems of innovation performance measurement, especially; the development of methodological tools in the assessment of innovation performance in developing countries. The paper discusses and substantiates the author's position on informal sector innovation in developing economies, and its related concepts. Using regression and correlation analysis, an assessment of innovation performance of economies was carried out using innovation development variables. Although, we found a weak correlation between innovation performance and GDP per capita income, however, we think the nature of data used plays some importance in the outcome. It could be argued that the need for an integrated approach in undertaking research surveys for the above purpose. The paper highlights the criteria used in measuring innovation performance of countries. The authors emphasize on the need for a wide spectrum of approaches, not based on only the mainstream prerequisites , but also taking into account subjective assessment of innovation in the informal sector of developing countries, which innovates to solve local problems. The methodological research tools include the reviewing of literature, theoretical approaches and various innovation concepts in assessing innovation performance, comparative analysis of the components of innovation. The paper discussed some prospects and importance of informal innovation to the Sub-Saharan economies, especially in the informal sector as a major source of employment and provides a larger proportion of the continent's GDP. This study provides a guideline in future research and innovation surveys for policymakers, economists and business people for better inclusive assessment of innovation performance of economies. 1. Introduction
Mobile money has become a mode of banking for the unbanked residents and the system has been gaining patronage among citizens of developing countries. This trend especially refers to sub-Saharan Africa, where the level of financial inclusion is low. Thus, the expansion of the mobile money as well as easy access to it promotes the development of the financial sector in the region. To define the role of the financial elements in innovation growth in sub-Saharan African countries, we examined the relationship between mobile money activities, remittance, financial development, and innovation growth in sub-Saharan Africa (SSA). Using partial least squares (PLS), we conducted a comprehensive analysis to econometrically establish the nexus between innovation development and financial activities in sub-Saharan African region. The results show that significant positive relationship exists between all the independent variables and innovation growth (the dependent variable). Thus, this study indicates that mobile money services, financial development and remittances have significant impact on economic growth. However, mobile money services are the most influential variable. Hence, these results can be used by policymakers to encourage and improve mobile money payment and banking system as this could facilitate the pooling of resources and their effective allocation to productive sectors, thus leading to the promotion of innovative growth in the region.
In developing countries, specifically in sub-Saharan Africa, mobile money comes with huge benefits to users by facilitating users to better manage their cash flows, it allows firms and start-ups to invest, foster the creation and expansion of businesses, reduce transaction costs, pool capital (funds) over time for effective allocation as well as it simplifies and speeds up efficient government transfers. These benefits enables mobile money users to realize and accept significant innovation processes and strategies, especially in the financial sector, which encourages better conduct of monetary policy. This paper analyzes the macroeconomic impact and its role in financial development including how the system can facilitate the funding of development projects. Particularly, we use GDP per capita and domestic credit from financial sector to proxy for economic growth and access to investment resources, respectively, and their link with mobile money services or activities using dataset from GSMA and the World Bank. To ensure that our study is not bias, we included the number of commercial bank branches as a control variable. Our results indicate that there is a significant positive relation between mobile money and all the variables used during the understudied period, thus confirming that mobile money plays significant role in economic development and the accumulation of capital for financing development projects in sub-Saharan Africa. This paper is important to economic literature as it addresses with evidence the impact of mobile money in Sub-Saharan Africa, which is instructive to policy makers to continue implementing strategic and effective policies that encourage mobile money development in the region.
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