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    Munich Personal RePEc Archive

    How has mobile banking stimulated

    financial development in Africa?

    Asongu Simplice A

    4. May 2012

    Online at http://mpra.ub.uni-muenchen.de/38576/

    MPRA Paper No. 38576, posted 5. May 2012 14:36 UTC

    http://mpra.ub.uni-muenchen.de/38576/http://mpra.ub.uni-muenchen.de/38576/http://mpra.ub.uni-muenchen.de/

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    How has Mobile Banking Stimulated Financial Development in Africa?

    Simplice A. Asongu

     African Governance and Development Institute ,

     P.O. Box 18 SOA/ 1!" #aound$, %ameroon.

    E-mail: [email protected]

    1

    mailto:[email protected]:[email protected]

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    How has Mobile Banking Stimulated Financial Development in Africa?

    Abstract

    In the first empirical assessment of the incidence of mobile banking on financial

    intermediary development in Africa !e use t!o definitions of the financial system: the

    traditional I"S #$%%&' and Asongu #$%11' measures of financial sector importance. (hen the

    conception of a financial system is based only on banks and other financial institution #I"S

    $%%&' mobile banking has a negative incidence on traditional financial intermediary

    dynamics of depth activity and si)e. *o!ever !hen a previously missing informal-financial

    sector component is integrated into the definition #Asongu $%11' mobile-banking has a

     positive incidence on informal financial intermediary development. +hree ma,or implications

    result from the findings. #1' +here is a gro!ing role of informal finance in developing

    countries. #$' +he incidence of the burgeoning phenomenon of mobile-banking cannot be

    effectively assessed at a macroeconomic level by traditional financial development indicators.

    #' It is a !ake-up call for scholarly research on informal financial intermediary development

    indicators !hich !ill oriented monetary policy since a great chunk of the monetary base#/%'

    in less developed countries is no! captured by mobile-banking.

     &'( %lassification: E%% 0$% 23 415 4

     )e*+ords: 6anking /obile 7hones Shado! Economy "inancial 8evelopment Africa

    $

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    1 !ntroduction

    +he mobile revolution has transformed the lives of many Africans providing not ,ust

    communications but also basic financial access in the form of phone-based money transfer

    and storage #9onathan ;amilo $%%& 8emombynes +hegeya $%1$'. +he high gro!th

    and penetration rates of mobile telephony that is transforming cell phones into pocket-banks

    in Africa is providing opportunities for countries on the continent to increase affordable and

    cost effective means of bringing on board a large chunk of the population that hitherto has

     been e

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     for particular countries or mar3ets, tere is little evidence so+in tat tis as translated

    into macroeconomic ains#Aker /biti$%1%$$F'. Also as sustained by /aurer #$%%&'

    and confirmed in subseuent literature #9onathan ;amilo $%%& +hacker (right $%1$'

    scholarly research on the adoption and socioeconomic impacts of m-banking #payments'

    systems in the developing !orld is scares. "rom a broad perspective most studies on mobile-

     banking have been theoretical and ualitative in nature #/aurer $%%& 9onathan ;amilo

    $%%& /erritt $%1% +hacker (right $%1$'. +he fe! e

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     based on the findings !e provide relevant measures that could guide future search and

    macroeconomic policy.

    +he rest of the paper is organi)ed as follo!s. Section $ revie!s e

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    services offer a !ay to move money from place to place and present an alternative to the

     payments system offered by banks pa!n shops remittance firmsetc. +he uptake of m-

     banking#payments' systems has been particularly strong in the 7hilippines#!here three

    million customers use systems offered by mobile operators Smart 0lobe Jeville$%%3'

    =enya#!here nearly t!o million users registered !ith Safaricom /-7ESA system !ithin a

    year of its nation!ide rollout Kaughan$%%5 Ivatury /as$%%&' and South Africa !here

    FG% %%% people use (i))it#Cthe bank in your pocketD Ivatury 7ickens $%%3' or one of t!o

    other national systems#7orteous$%%5'.

    8emombynes +hegeya#$%1$' have approached the mobile-finance ne

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     banking services' from that of the mobile service provider#!hich provides mobile telephony

    infrastructure and controls the agent net!ork'. +hus the bank compensates the mobile service

     provider for access to the net!ork and en,oys the remaining profits. +his type of contract

    more closely looks like a debt contract bet!een parties. 4n the other hand a fully integrated

    solution may not dra! the same distinction bet!een bank and mobile service providers. In

    this case the distribution of surplus is contingent on the relative bargaining po!er of the bank

    and mobile service provider. +his sort of contract more closely resembles an euity contract

     bet!een t!o parties. Euity-like contracts are more likely to be comple< and therefore more

    difficult to negotiate than debt-like contracts there-by presenting a potential hurdle to!ards

    the goal of increasing access.

    4ndiege#$%1%' ;hief Economist of the African 8evelopment 6ank looks at the

    mobile-finance ne

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    "ourthly the mobile phone may be used as an Internet banking terminal. Implying it offers

    t!o fundamental customer services: a' ability to make payments and transfers remotely and

     b' instant access to any account. *ence the mobile phone device and !ireless connectivity

     bring the internet terminal into the hands of other!ise unbanked customers.

    .1. Instrumental varia-les

    In this section !e provide theoretical bases to ,ustify the choice of instrumental

    variables for the empirical phase of the paper. +hus !e provide theoretical ,ustification to the

    empirical validity of legal-origins income-levels religious-dominations and press-freedom

    ualities in the finance-gro!th ne

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    In the second strand !e provide theoretical ,ustification to the choice of income-level

    instrumental variables. It has been !ell documented that !ealth-effects play a substantial role

    in the finance-gro!th ne

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    are short te

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    villages in Africa !ill have coverage !ith only a handful of countries relatively unconnected.

    6orro!ing from 8emombynes +hegeya #$%1$' =enya has undergone a remarkable

    information and communication technology #I;+' revolution. At the turn of the 122%s less

    than M of =enyan households o!ned a telephone and less than 1 in 1%%% =enyan adults had

    mobile phone service. *o!ever by the end of $%11 2 percent of =eynan households o!ned

    a mobile phone. +his soar is largely credited to the /-7ESA mobile-banking net!ork.

    6anks are recogni)ing the potential of reaching millions of prospective customers

    especially the rural population !ho account for more than 3%M of AfricaDs total population

    and have no access to banking services #4ndiege $%1%'. +he rural commercial bank branch

    net!ork is yet underdeveloped. *o!ever since above G%M of the adult population in Africa

    has access to 0S/s mobile banking could enable the rural population to have access to

    financial services as demonstrated by the cases of =enya and South Africa. +he cost of formal

     banking in Africa is uite high: in some countries the minimum deposit can be as high as

    G%M of per capita 087. /ore so internet and broadband subscription are still lo! making

    internet banking out of reach for most of the population. In this regard mobile banking can be

    used to provide financial services to the unbanked. "inancial institutions and Cmobile phoneD

    service providers are introducing resourceful methods of bringing these CunservedD

     populations into the formal economy using mobile phones. As concerns banks the main

    advantages of the mobile phone lie in its capacities to reach every!here. Its po!er is in

    transforming the economics of service delivery especially by mitigating costs of financial

    transactions. /obile banking is a po!erful means of delivering savings services to the billions

    of people !orld!ide !ho have a cell phone but not a bank account. It has a number of

    advantages over traditional banking methods as it breaks do!n geographical constraints it

    also offers other advantages such as immediacy efficiency and security.

    11

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    "& Scope and positioning of the paper

    +he proliferation of mobile money in Africa has generated research attempting to

    e

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    Cmobile phoneD development literature concludes: ? 'xistin empirical evidence on te effect

    of mo-ile pone coverae and services suest tat te mo-ile pone can potentiall* serve as

    a tool for economic development in Africa. But tis evidence +ile certainl* encourain

    remains limited. 2irst, +ile economic studies ave focused on te effects of mo-ile pones

     for particular countries or mar3ets, tere is little evidence so+in tat tis as translated

    into macroeconomic ains;#Aker /biti$%1%$$F'. Also as postulated by /aurer #$%%&'

    and confirmed in subseuent literature #9onathan ;amilo $%%& +hacker (right$%1$'

    scholarly research on the adoption and socioeconomic impacts of m-banking#payments'

    systems in the developing !orld is scares. "rom a broad perspective most studies on mobile-

     banking have been theoretical and ualitative in nature #/aurer $%%& 9onathan ;amilo

    $%%& /erritt $%1% +hacker (right $%1$'. +he fe! e

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    sectors are benefiting most from mobile banking !e assess its impact by disentangling

    financial depth to integrate a previously missing component. *ence !e are able to capture

     both formal and informal financial intermediary development effects. +hirdly based on the

    findings !e provide relevant measures that could guide future search and macroeconomic

     policy.

    & Data and methodolog'

    &1 Data

    (e e

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    c7 2inancial si

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    .1. Oter varia-les

    ;ontrol e

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    Suares #4S' !hen the e

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    ( #mpirical anal'sis

    (1 )resentation of results

    +his empirical section addresses t!o main issues: #1' the ability of the e

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    elasticities of finance point to the deterioration of the traditional financial intermediary

    dynamics o!ing to the phenomenon of mobile penetration. +his negative incidence is more

     pronounced in financial system activity than in banking system activity and also more

    !itnessed in financial system deposits than in economic financial depth. +!o facts e

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    attests to a hypothetical positive incidence of mobile banking on the informal financial sector

    #!hich is still not a component of the financial system according to the I"S $%%& definition'.

    +he second issue is addressed by the Sargan 4I> test over!helming failure to re,ect

    the null hypothesis of this test points to the validity of the instruments and suggests that they

    #instruments' do not e

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    %able 1* !mpact of mobile banking on traditional financial intermediar' d'namics)anel A* +egressions without HA, Standard #rrors

    Financial Depth Financial #fficienc' Financial Activit' Fin Si-e

    Economic

    fin. depth

    "inancial

    Sys depth

    6anking Sys

    Efficiency

    "inancial Sys

    Efficiency

    6anking Sys

    Activity

    "inancial

    Sys Activity

    "inancial

    Sys Si)e

    ;onstant 11("... 1(/0... 1.G2 "&/... 1&(&... "210... "2(1...311("4 322224 #%.$%1' 322254 322224 322224 3222&4

    /obile 6anking 62/2".. 625"7... -%.$21 -1.$1& 62/... 612"7... 625&0...

    322"&4 322224 #%.G32' #%.131' 322224 322224 322274

    Inflation -%.%%1 -%.%%% -%.%%% -%.%F& -%.%%2 -%.%1$ -%.%%%1

      #%.&2%' #%.25$' # %.3%' #%.$$&' #%.%G' #%.2&' #%.F%&'087 0ro!th --- --- -%.%33 %.1% --- --- %.%%%F

    #%.5F1' #%.G2F' #%.223'

    Sargan -4I>  /(77 /077 "(22 &"" 52/" //(/ "272

    32"&74 32"24 32(7&4 32&/"4 321&&4 32"&/4 32//&4

    Ad,usted >Q %.%3& %.$1$ -%.%$$ -%.%$& %.$G1 %.$1$ %.%&2"isher "/55. 12/... %.3$F 1.GF1 /0"... 1&7... &117..

    4bservations G1 G1 G1 G1 G1 G1 G1

    Instruments ;onstant o!er /iddle Income /iddle Income English ;hristian "ree 7artially "ree.>obust instruments ;onstant pper /iddle Income o! Income "rench Islam Jot "ree.

    )anel A* +egressions with HA, Standard #rrors

    Financial Depth Financial #fficienc' Financial Activit' Fin Si-e

    Economic

    fin. depth

    "inancial

    Sys depth

    6anking Sys

    Efficiency

    "inancial Sys

    Efficiency

    6anking Sys

    Activity

    "inancial

    Sys Activity

    "inancial

    Sys Si)e

    ;onstant 11(".. 1(/0... 1.G2 $.3G 1&(&... "210.. "2(1...

    322"54 322224 #%.1G' #%.1%%' 322214 322"(4 322224

    /obile 6anking 62/2". 625"7... -%.$21 -1.$1& 62/... 612"7.. 625&0...

    322554 322214 #%.G&' #%.$&&' 3222(4 322&4 322224

    Inflation -%.%%1 -%.%%% -%.%%% -%.%F& -%.%%2 -%.%1$ -%.%%%1

      #%.&5F' #%.233' #%.1&%' #%.1GG' #%.1&1' #%.$&%' #%.F$3'087 0ro!th --- --- -%.%33 %.1% --- --- %.%%%F

    #%.G&2' #%.GG' #%.22G'

    Sargan -4I>  /(77 /077 "(22 &"" 52/" //(/ "272

    32"&74 32"24 32(7&4 32&/"4 321&&4 32"&/4 32//&4

    Ad,usted >Q %.%3& %.$1$ -%.%$$ -%.%$& %.$G1 %.$1$ %.%&2

    "isher 1.355 //0&... %.&%% %.253 (217.. $.12F //0...

    4bservations G1 G1 G1 G1 G1 G1 G1

    Instruments ;onstant o!er /iddle Income /iddle Income English ;hristians "ree 7artially "ree.

    >obust instruments ;onstant pper /iddle Income o! Income "rench Islam Jot "ree.

    RRRRRR: significance levels of 1%M GM and 1M respectively. "in: "inancial. Sys: System. *A;: *eteroscedasticity and Autocorrelation

    ;onsistent. 4I>: 4veridentifying >estrictions. 7-values in brackets

    +able $ belo! is based on the Asongu #$%11a' definition of the financial system !hich

    integrates the previously missing informal financial sector component into the I"S #$%%&'

    definition. Instead of using traditional indicators of financial development based on dynamics

    of depth efficiency activity and si)e as captured by +able 1 !e employ measures of sector

    importance. *ence !e distinguish bet!een the formal semi-formal and informal sectors. (e

    use t!o indicators of informal finance #absolute and relative measures' to distinguish bet!een

    $$

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    the gro!th in absolute terms of the informal sector # Informal 1' conditional on 087 and

    relative gro!th of the informal sector # Informal ' contingent on /$. *ence the later

    measures the relative importance of the informal sector !ith respect to the t!o other sectors

    encapsulated in the I"S #$%%&' definition. In other !ords  Informal  appreciates ho! the

    informal financial sector evolves at the e

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    !hile the financial depth of +able 1 is made-up of financial system deposits. +his difference

    therefore partly elucidates the insignificance of the negative sign.

    (ith regard to the second concern failure to re,ect the null hypothesis of the Sargan-

    4I> test in all regressions point to the validity of the instruments. It follo!s that the

    instruments e  2/(/ 1(&2 1(1( 1(0& 2/(/ 1(&2 1(1( 1(0&

    327204 32704 3252"4 3204 327204 32704 3252"4 3204

    Ad,usted >Q %.1% %.%$1 %.15F %.1&$ %.1% %.%$1 %.15F %.1&$

    "isher /17(... 1.GG2 (20... ("&... &2&2.. "/"0. 1"... 11122...

    4bservations G1 G1 G1 G1 G1 G1 G1 G1

    Instruments ;onstant o!er /iddle Income /iddle Income English ;hristians "ree 7artially "ree.

    >obustInstruments

    ;onstant pper /iddle Income o! Income "rench Islam Jot "ree

    RRRRRR: significance levels of 1%M GM and 1M respectively. *A;: *eteroscedasticity and Autocorrelation ;onsistent. 4I>:

    4veridentifying >estrictions. 7-values in brackets.

    (" Further discussion of results8 polic' implications and future directions

    6efore !e delve into further discussion of the results it is imperative to outline the

    intuition motivating this paper. #1' Some voices have e

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    economic development in Africa. But tis evidence +ile certainl* encourain remains

    limited. 2irst, +ile economic studies ave focused on te effects of mo-ile pones for

     particular countries or mar3ets, tere is little evidence so+in tat tis as translated into

    macroeconomic ains#Aker /biti$%1%$$F'. #'As postulated by /aurer #$%%&' and

    confirmed in subseuent literature #9onathan ;amilo $%%& +hacker (right $%1$'

    scholarly research on the adoption and socioeconomic impacts of m-banking systems in the

    developing !orld is scares. "rom a broad perspective most studies on mobile banking have

     been theoretical and ualitative in nature #/aurer $%%& 9onathan ;amilo $%%& /erritt

    $%1% +hacker (right $%1$'. +he fe! e

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     been able to capture both formal and informal financial intermediary development effects.

    +hirdly based on the findings !e !ill provide relevant policy measures that could guide

    future search and macroeconomic policy.

    In this first empirical assessment of the incidence of mobile banking on financial

    intermediary development in Africa !e have used t!o definitions of the financial system: the

    traditional I"S #$%%&' and Asongu #$%11a' measures of financial sector importance. +!o

     broad findings have been established. #1' (hen the financial system is based only on banks

    and other financial institution #I"S $%%&' mobile banking has a negative incidence on

    traditional financial intermediary dynamics of depth activity and si)e. #$' *o!ever !hen a

     previously missing informal-financial sector component is integrated into the definition

    #Asongu $%11a' mobile banking has a positive incidence on informal financial intermediary

    development. /obile banking is therefore a po!erful means of delivering savings services to

    the millions of people in Africa !ho have a cell phone but not a bank account. It has a number

    of advantages over traditional banking methods as it breaks do!n geographical constraints it

    also offers other advantages such as immediacy efficiency and security. +his could partly

    e

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    6eside rethinking monetary policy transmission mechanisms other future research

    directions could include: #1' ascertaining !hether and ho! mobile phones can lead to poverty

    reduction through gro!th and financial development #$' an assessment of short medium and

    long-term incidences of mobile phones on financial development is also !orthy of note #'

    conseuences of regulation on mobile banking #F' last but not the least monetary policy tools

    that could fight inflation resulting from mobile banking activities.

    / ,onclusion

    In the first empirical assessment of the incidence of mobile banking on financial

    intermediary development in Africa !e have used t!o definitions of the financial system:

    the traditional I"S #$%%&' and Asongu #$%11a' measures of financial sector importance. (hen

    the financial system is based only on banks and other financial institution #I"S $%%&' mobile

     banking has a negative incidence on traditional financial intermediary dynamics of depth

    activity and si)e. *o!ever !hen a previously missing informal-financial sector component is

    integrated into the definition #Asongu $%11a' mobile-banking has a positive incidence on

    informal financial intermediary development. +hree ma,or implications result from the

    findings. #1' +here is a gro!ing role of informal finance in developing countries. #$' +he

    incidence of a burgeoning phenomenon of mobile banking cannot be effectively assessed at a

    macroeconomic level by traditional financial development indicators. #' It is a !ake-up call

    for scholarly research on informal financial intermediary development indicators !hich !ill

    oriented monetary policy since a great chunk of the monetary base#/%' in less developed

    countries is no! captured by mobile banking#informal financial activities'.

    $5

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    Appendices

    Appendi$ 1* Summar' statistics and presentation of countries)anel A* Summar' Statistics

    Mean SD Min Ma$ 9bser

    "inancial8epth

    Economic System 8epth#/$' %.2 %.$F$ %.%52 1.%$$ FF"inancial System 8epth#"dgdp' %.$5 %.$$3 %.%F$ %.&2G FF

    "inancialEfficiency

    6anking System Efficiency#6c6d' %.5%3 %.FF %.$G$ $.$F2 G1"inancial System Efficiency#"c"d' %.51$ %.&$ %.$G2 $.FG& G

    "inancial

    Activity

    6anking System Activity#7crb' %.1&G %.15G %.%$5 %.51G FF

    "inancial System Activity#7crbof' %.$%& %.$FF %.%$5 1.F$ FF

    "inancial Si)e "inancial System Si)e#8bacba' %.53G %.$1% %.%3 1.%5F G1

    "ormal ".8 6anking System 8eposits#6dgdp' %.$51 %.$$G %.%F$ %.&2$ FF

    Informal ".8 1 Absolute Informal ".8 %.%33 %.%GF -%.1FG %.$15 FF

    Informal ".8 $ >elative Informal ".8 %.$2 %.15 -%.3 %.5$5 FF

    Informal Semi-formal

    >elative Informal and Semi-formal".8 8evelopment

    %.$F3 %.15 -%.3 %.5$5 FF

    /obile 7hone 7enetration 1.35F %.$15 1.%F $.$F$ G$

    Inflation 115.2G 53F.3% 1.2G G%F.& FF

    087 gro!th F.53% .%&5 -3.2G2 1$.&2F G%

    InstrumentalKariables

    English ;ommon la! %.&F %.F21 %.%%% 1.%%% G$"rench ;ivil la! %.31G %.F21 %.%%% 1.%%% G$

    ;hristian %.31G %.F21 %.%%% 1.%%% G$

    Islam %.&F %.F21 %.%%% 1.%%% G$pper /iddle Income %.12$ %.25 %.%%% 1.%%% G$

    o!er /iddle Income %.$% %.F$G %.%%% 1.%%% G$o! Income %.G53 %.F2& %.%%% 1.%%% G$

    /iddle Income %.F$ %.F2& %.%%% 1.%%% G$+otal "reedom %.13 %.F3 %.%%% 1.%%% G$

    7artial "reedom %.3$ %.F$ %.%%% 1.%%% G$ Jo "reedom %.F5F %.F5 %.%%% 1.%%% G$

    )anel B* )resentation of ,ountries

    Algeria Angola 6enin 6ots!ana 6urkina "aso 6urundi ;ameroon ;ape Kerde ;entral African >epublic;had ;ongo 8emocratic >epublic ;ongo >epublic Ivory ;oast 8,ibouti Egypt Euatorial 0uinea Ethiopia

    0abon +he 0ambia 0hana 0uinea 0uinea 6issau =enya esotho iberia ibya /adagascar /ali /ala!i/auritania /auritius /orocco /o)ambiue Jamibia Jiger Jigeria >!anda Sao +ome 7rincipe Senegal

    Seychelles Sierra eone Somalia South Africa Sudan S!a)iland +ogo +unisia ganda ambia imbab!e+an)ania ;omoros.

    S.8: Standard 8eviation. /in:/inimum. /a

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    Appendi$ "* ,orrelation anal'sisFormal Financial Development3FD4 !nformal : Semi6formal FD /obile

    7enetra

    tion

    Inflation 087

    0ro!th"inancial 8epth "inancial Efficiency "inancial Activity "in. Si)e Inform

    al 1Inform

    al $Informal Semiformal/$gdp "dgdp 6dgdp 6c6d "c"d 7crb 7crbof 8bacba

    1.%%% %.25F %.25F -%.1$F %.%F$ %.5G% %.G55 %.$&1 %.22 -%.31 -%.3F -%.F23 -%.%2$ -%.$F /$gdp1.%%% %.222 -%.%3F %.132 %.&$G %.32G %.3% %.1&G -%.GF -%.G3 -%.G2% -%.%GF -%.$%& "dgdp

    1.%%% -%.%3$ %.133 %.&$F %.32F %.3$ %.1&3 -%.G$ -%.G& -%.G2 -%.%GG -%.$1% 6dgdp

    1.%%% %.&5 %.G2 %.F2 %.1 -%.$&$ -%.1G -%.1G3 -%.$2 -%.%FG -%.%5$ 6c6d

    1.%%% %.G&2 %.55$ %.5$ -%.G1 -%.F53 -%.F31 -%.$F -%.12F -%.113 "c"d

    1.%%% %.2$$ %.FF5 -%.%& -%.G2% -%.G25 -%.G&3 -%.1G1 -%.125 7crb

    1.%%% %.&$ -%.1$ -%.3GF -%.3G$ -%.GG1 -%.1$ -%.1&G 7crbof  

    1.%%% -%.$& -%.G35 -%.G&G -%.G$ -%.13% %.151 8bacba1.%%% %.3%G %.G23 %.$& -%.1&G -%.155 Informal 1

    1.%%% %.2& %.F55 -%.$1 -%.%F& Informal $

    1.%%% %.F2$ -%.$%& -%.%2 Inf Semi

    1.%%% -%.%1 %.$GG /obile 7.

    1.%%% -%.G32 Inflation

    1.%%% 087 gro!th

    /$gdp: Economic financial depth. "dgdp: "inancial system depth. 6dgdp: 6anking system depth . 6c6d: 6anking system efficiency. "c"d: "inancial system efficiency. 7crb: 6anking system a ctivity. 7crb: "inancialsystem activity. 8bacba: "inancial system si)e. Informal 1: Absolute informal financial development. Informal $: >elative informal financial development. ".8: "inancial 8evelopment. "in: "inancial.

    $2

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    Appendi$ &* ;ariable definitions;ariables Signs ;ariable definitions Sources

    Economic "inancial 8epth /$ /oney supply#M of 087' (orld 6ank#"8S8'

    "inancial System 8epth "dgdp iuid liabilities#M of 087' (orld 6ank#"8S8'

    6anking System 8epth 6dgdp 6anking deposits#M of 087' (orld 6ank#"8S8'

    6anking System Efficiency 6c6d 6ank credit on 6ank deposits (orld 6ank#"8S8'

    "inancial System Efficiency "c"d "inancial credit on "inancial deposits (orld 6ank#"8S8'

    6anking System Activity 7rcb 7rivate domestic credit from deposit banks#M of 087' (orld 6ank#"8S8'

    "inancial System Activity 7rcbof 7rivate domestic credit from deposit banks and otherfinancial institutions#M of 087'

    (orld 6ank#"8S8'

    "inancial Si)e 8bacba 8eposit bank assets on ;entral bank assets plus 8eposit

     bank assets

    (orld 6ank#"8S8'

    Absolute Informal "8 Informal 1 /$-"d#M of 087' (orld 6ank#"8S8'

    >elative Informal "8 Informal $ /$-"d#M of /$' (orld 6ank#"8S8'

    Informal and Semi-formal"8

    Informal Semi-

    formal

    /$-6d#M of /$' (orld 6ank#"8S8'

    /obile 7hone 7enetration /obpen Seven year average gro!th rate#M of population' Af86

    Inflation Infl ;onsumer 7rice Inde< #annual M' (orld 6ank#(8I'

    Economic 7rosperity 087g 087 0ro!th #annual M' (orld 6ank#(8I'

    "reedom "ree 7ress "reedom Luality "reedom *ouse(8I: (orld 6ank 8evelopment Indicators. "8S8: "inancial 8evelopment and Structure 8atabase. "8: "inancial 8evelopment. Af86: African 8evelopment

    6ank. "d:"inancial system deposits. 6d: 6anking system deposits. /$: /oney supply.

    %

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