TITLE:
Institutional Environment and Financial Inclusion in Sub-Saharan Africa
AUTHORS:
Ganga Zandzou Ulrich Jeanin Aymar, Ndombi Avouba Fabrice-Gilles
KEYWORDS:
Financial Inclusion, Governance, Sub-Saharan Africa, Multiple Linear Regression Model
JOURNAL NAME:
Modern Economy,
Vol.12 No.3,
March
18,
2021
ABSTRACT: The purpose of this study is to analyze the effect
of institutional factors on financial inclusion through the lens of the
integration of mobile money. To achieve this objective, a multiple regression
model is chosen, justified by the acceptance of the null hypothesis that the
specified endogenous regressor, in our case GDP per capita, can indeed be
treated as exogenous. The estimation of this model by Ordinary Least Squares (OLS)
using data from the World Development Indicators (WDI) and the World Governance
Indicators (WGI) databases reveals that the quality of regulation is, a priori,
the only institutional factor affecting financial inclusion since it is a
driver of financial inclusion in SSA. This result, which corroborates the
theory of financial liberalization, makes it possible to identify economic policy
implications supporting the implementation of incentive-based regulation in the
banking system and the regulation of the mobile money sector.