The African Financial Development and Financial Inclusion Gaps

By Franklin Allen, Elena Carletti, Robert J. Cull, J. Qian, Lemma W. Senbet, Patricio Valenzuela. 2014

324 citations recorded by the source corpus.

This paper investigates the African financial development and financial inclusion gaps relative to other peer developing countries. The paper uses a set of variables related to financial development and inclusion. It first estimates the gaps between African countries and other developing countries with similar degrees of economic development. Then, it explores the determinants of financial development and inclusion. The analysis finds that population density is considerably more important for financial development and inclusion in Africa than elsewhere. Finally, the paper shows evidence that a recent innovation in financial services, mobile banking, has helped to overcome infrastructural problems and improve financial access.

Subfields: Accounting, Economics and Econometrics, Information Systems

View Paper: https://www.semanticscholar.org/paper/f007611f55c0c05266a0f43234cb9b4c5f1bb62c

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In Accounting

1. M. Omar
2. Aparna Gosavi
3. K. Inaba

In Economics and Econometrics

1. M. Omar
2. Aparna Gosavi
3. K. Inaba

In Information Systems

1. M. Omar
2. Aparna Gosavi
3. K. Inaba

Citations in the corpus

• Does financial inclusion reduce poverty and income inequality in developing countries? A panel data analysis (2020, methodology): “Allen et al. (2014) found that population density and GDP per capita are strongly positively linked, whereas natural resources are strongly negatively linked to both financial development and financial inclusion in sub-Saharan Africa than elsewhere in the world.”
• Can Mobile Money Help Firms Mitigate the Problem of Access to Finance in Eastern sub-Saharan Africa? (2018, methodology): “The model used a newly introduced measure of access-to-finance status of the firms proposed by Allen et al. (2014).”
• Financial inclusion research around the world: A review (2020, unknown): “Allen et al. (2014) show that innovative financial services helped to overcome infrastructural problems and improved access to finance in some African countries.”
• Analysis of the determinants of financial inclusion in Central and West Africa (2016, unknown): “Allen et al. (2012)), use either a Probit or Logit model where the dependent variable is a combination of the following binary variables: “owning a formal account” (Account); “having saved in past 12 months” (Saving); “having borrowed in past 12 months” (Borrowing); and the frequency of account usag”
• Banking in Africa (2013, unknown): “Predicted liquid liabilities/GDP levels exceed actual levels for most countries, though the gap has narrowed since 2001-6, and the share of individuals age fifteen or over with an account at a formal institution actually exceeds predicted levels in many countries (Allen et al, 2013).”