Skip to main content

LUP Student Papers

LUND UNIVERSITY LIBRARIES

Mobile Money and Financial Development in Sub-Saharan Africa - A Digital Key to Economic Growth?

Barnevik, Noa and Wijkander, Emma LU (2025) NEKH03 20251
Department of Economics
Abstract
This thesis examines whether, and to what extent, mobile money drives financial development in Sub-Saharan Africa. Given the well-documented positive effect of financial development on economic growth, it is of interest to determine whether mobile money in turn will have a positive impact on economic growth. Three different multiple regression analyses using unbalanced panel data are performed to estimate the effect of mobile money usage on three aspects of the financial system: personal remittances received, gross capital formation, and domestic credit to private sector. The regressions draw on data from 11 Sub-Saharan African countries over the period 2000-2023. The results reveal a statistically significant negative relationship between... (More)
This thesis examines whether, and to what extent, mobile money drives financial development in Sub-Saharan Africa. Given the well-documented positive effect of financial development on economic growth, it is of interest to determine whether mobile money in turn will have a positive impact on economic growth. Three different multiple regression analyses using unbalanced panel data are performed to estimate the effect of mobile money usage on three aspects of the financial system: personal remittances received, gross capital formation, and domestic credit to private sector. The regressions draw on data from 11 Sub-Saharan African countries over the period 2000-2023. The results reveal a statistically significant negative relationship between mobile money and remittance inflows. In contrast, the analyses find no significant relationship between mobile money and either gross capital formation or domestic credit to private sector. While the findings offer limited evidence of an impact on financial development, they underscore the importance of further research. Given the recent emergence and rapid expansion of mobile money across Sub-Saharan Africa, its influence on the financial system and economic growth is believed to be observed over time. (Less)
Please use this url to cite or link to this publication:
author
Barnevik, Noa and Wijkander, Emma LU
supervisor
organization
course
NEKH03 20251
year
type
M2 - Bachelor Degree
subject
keywords
Mobile money, Sub-Saharan Africa, financial development, financial inclusion, economic growth
language
English
id
9203589
date added to LUP
2025-09-12 09:20:01
date last changed
2025-09-12 09:20:01
@misc{9203589,
  abstract     = {{This thesis examines whether, and to what extent, mobile money drives financial development in Sub-Saharan Africa. Given the well-documented positive effect of financial development on economic growth, it is of interest to determine whether mobile money in turn will have a positive impact on economic growth. Three different multiple regression analyses using unbalanced panel data are performed to estimate the effect of mobile money usage on three aspects of the financial system: personal remittances received, gross capital formation, and domestic credit to private sector. The regressions draw on data from 11 Sub-Saharan African countries over the period 2000-2023. The results reveal a statistically significant negative relationship between mobile money and remittance inflows. In contrast, the analyses find no significant relationship between mobile money and either gross capital formation or domestic credit to private sector. While the findings offer limited evidence of an impact on financial development, they underscore the importance of further research. Given the recent emergence and rapid expansion of mobile money across Sub-Saharan Africa, its influence on the financial system and economic growth is believed to be observed over time.}},
  author       = {{Barnevik, Noa and Wijkander, Emma}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Mobile Money and Financial Development in Sub-Saharan Africa - A Digital Key to Economic Growth?}},
  year         = {{2025}},
}