Does mobile telephony spur growth? Evidence from Indian states

Ghosh, Saibal

doi:10.1016/j.telpol.2016.05.009

Cited by 92 publications

(66 citation statements)

References 56 publications

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“…There is evidence of a strong association between the level of mobile phone penetration and financial inclusion across and within countries (e.g. Andrianaivo and Kpodar 2012;Ghosh 2016). There is also evidence of a positive relationship between mobile money use, on the one hand, and household and firm financial inclusion, on the other.…”

Section: Fintech and Financial Inclusionmentioning

confidence: 98%

“…Mookerjee and Kalipioni 2010; Hermes 2014; Lacalle-Calderon et al 2019). The instruments used for FinTech (mobile finance) are mobile phone penetration and fixed broadband penetration (Andrianaivo and Kpodar 2012;Ghosh 2016;Demirgüç-Kunt et al 2018). The definition, summary statistics and correlation matrix of these instruments and our FinTech, financial inclusion and income inequality variables are provided in Appendix Tables A3-A6.…”

Section: Main Variables Of Interestmentioning

confidence: 99%

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Fintech, financial inclusion and income inequality: a quantile regression approach

Demir

Pesqué‐Cela

Altunbaş

et al. 2020

The European Journal of Finance

351

139

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Although theory suggests that financial market imperfections-mainly information asymmetries, market segmentation and transaction costs-prevent poor people from escaping poverty by limiting their access to formal financial services, new financial technologies (FinTech) are seen as key enablers of financial inclusion. Indeed, the UN 2030 Agenda for Sustainable Development (UN-2030-ASD) and the G20 High-Level Principles for Digital Financial Inclusion (G20-HLP-DFI) highlight the importance of harnessing the potential of FinTech to reduce financial exclusion and income inequality. This paper investigates the interrelationship between FinTech, financial inclusion and income inequality for a panel of 140 countries using the Global Findex waves of survey data for 2011, 2014 and 2017. We posit that FinTech affects inequality directly and indirectly through financial inclusion. We invoke quantile regression analysis to investigate whether such effects differ across countries with different levels of income inequality. We uncover new evidence that financial inclusion is a key channel through which FinTech reduces income inequality. We also find that while financial inclusion significantly reduces inequality at all quantiles of the inequality distribution, these effects are primarily associated with higher-income countries. Overall, our results support the aspirations of the UN-2030-ASD and G20-HLP-DFI. Highlights • Harnessing the potential of FinTech to reduce financial exclusion and income inequality has been proposed by the UN and G20. • We posit that FinTech affects income inequality directly and indirectly through financial inclusion. • We invoke quantile regression analysis to investigate whether the effects of FinTech differ across countries with different levels of income inequality. • We find that financial inclusion is a key channel through which FinTech reduces income inequality, at all quantile levels, primarily among higher-income countries.

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Section: Fintech and Financial Inclusionmentioning

confidence: 98%

Section: Main Variables Of Interestmentioning

confidence: 99%

Fintech, financial inclusion and income inequality: a quantile regression approach

Demir

Pesqué‐Cela

Altunbaş

et al. 2020

The European Journal of Finance

351

139

View full text Add to dashboard Cite

show abstract

“…Moreover, independently, the correlation between mobile phone penetration rates and financial inclusion was found to be positive and significant. Ghosh (2016) conducted a study in 14 major states in India and found that the penetration of mobile telephones had a positive and significant effect on the states' economic growth as well as a positive impact on financial inclusion.…”

Section: Literature Reviewmentioning

confidence: 99%

Has expansion of mobile phone and internet use spurred financial inclusion in the SAARC countries?

Lenka

Barik

2018

Financ Innov

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Exclusion from the mainstream financial world is a burden on the poor of many countries. The proliferation of new mobile and online financial services, such as e-banking, money transfers, and payment processing has the potential to provide access to basic financial products and services to financially excluded people. The purpose of this study was to investigate the effects of the growth of mobile phone and Internet use on financial inclusion in the South Asian Association for Regional Cooperation (SAARC) countries from 2004 to 2014. We applied principal component analysis to construct a financial inclusion index that served as a proxy variable for the accessibility of financial services in the SAARC countries. Using three different models-the fixed effect, random effect, and panel correction standard errors modelsthis study discovered a positive and significant relationship between the growth of financial inclusion and expansion of both mobile phone and Internet services. Moreover, an empirical study of the control variables showed that the levels of income and education were positively associated with financial inclusion, whereas the size of the rural population and unemployment were negatively related to financial inclusion. In addition, the empirical estimates posit a unidirectional causal flow from the growth of mobile and Internet services to expanded financial inclusion in the SAARC countries.

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“…From the literature, inclusive growth denotes both the pace and pattern of economic growth, which is assessed and interlinked (World Bank, 2009 (Ghosh, 2016;Imbert & Papp, 2015) without much emphasis on inclusive growth. Some researchers have investigated ICT penetration on specific sectors like the banking sector and other sectors (Osabuohien, 2008); how institutions matter for technological utilisation in Africa (Efobi & Osabuohien, 2015;Oluwatobi et al, 2015), the challenges and opportunities in technological diffusion for economic progress in Africa (Osabuohien & Efobi, 2012), ICT and productivity in Europe and the USA (Ark et al, 2002;Jorgenson 2003), ICT and agriculture (Ejemeyovwi et al 2017); ICT investments, human development and institutions in ECOWAS (Ejemeyovwi, Osabuohien & Osabohien, 2018), among others.…”

Section: Insights From Related Literaturementioning

confidence: 99%

Investigating the relevance of mobile technology adoption on inclusive growth in West Africa

Ejemeyovwi

Osabuohien

2018

Contemporary Social Science

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Disclaimer: AFEA Working Papers describe research in progress by the author(s) that has been peerreviewed and forthcoming in scientific outlets. There is a tacit acknowledgement of anonymous referees for constructive suggestions and critiques that have helped improve the content and rigour of the study. Each research stands on its merit and the views expressed in AFEA Working Papers are those of the author(s) and do not necessarily represent the views of the AFEA, its Executive Board, or AFEA management.

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Does mobile telephony spur growth? Evidence from Indian states

Cited by 92 publications

References 56 publications

Fintech, financial inclusion and income inequality: a quantile regression approach

Fintech, financial inclusion and income inequality: a quantile regression approach

Has expansion of mobile phone and internet use spurred financial inclusion in the SAARC countries?

Investigating the relevance of mobile technology adoption on inclusive growth in West Africa

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