Economic African Development in the Context of FinTech

Abstract

The purpose of this chapter is to analyze the effect of FinTech and political incertitude on economic growth through a multiple regression. Thus, the authors employ the method of generalized least square (GLS) with panel data. The sample concerns 21 African countries during (2001-2014-2017). The authors use a wide range of measures from Global Findex Database 2017, the World Bank platform, the World Bank national accounts data, and the OECD National Accounts data files base in the context of Africa. Empirical results show that FinTech is a driver of economic growth unless it is actively used in a developed digital infrastructure. In fact, the authors prove that, when financial technologies are used in both transactions (receive and made digital payment), they significantly contribute to the economic cycle. Passive use like simple consumption actions are not a significant lever for the economy. The principal contribution is to highlight that the active use of financial innovations and not passive one and the developed digital infrastructure do promote economic growth in African countries.

The impact of Fintech on inflation and unemployment: the case of Asia

“…Digitization is ranked among the main engines of economic development in the countries (Gonzalez Fernandez, González, & Fanjul-Suárez Velasc, 2020). Several researchers have studied the impact of technology on the economies of countries, such as Jagtiani (2018), Kammoun, Loukil, and Ben Romdhane (2020), Ben Romdhane, Loukil, and Kammoun (2020), Ben Romdhane Loukil, Loukil, and Kammoun (2021), Loukil, Ben Romdhane, Kammoun, and Ibenrissoul (2019). However, other studies focused their research on Fintech, (Haddad & Hornuf, 2019).…”

Impact of Mobile Money Taxation on Social Sector Financing in Sub-saharan Africa

“…Mobile money is "a technology that allows people to transfer funds between banks or accounts, deposit or withdraw funds, or pay bills by using a mobile phone" (ben Romdhane et al, 2019). In recent years, mobile money has become the transaction of choice for people with limited access to traditional financial institutions due to necessity, resulting into its widespread use in emerging markets (Figure 1).…”