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Innovations in emerging markets: the case of mobile money

Pelletier, Adeline, Khavul, Susanna and Estrin, Saul (2019) Innovations in emerging markets: the case of mobile money. Industrial and Corporate Change. ISSN 0960-6491

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Identification Number: 10.1093/icc/dtz049

Abstract

Mobile money is a financial innovation that provides transfers, payments, and other financial services at a low or zero cost to individuals in developing countries where banking and capital markets are deficient and financial inclusion is low. We use transaction costs and institutional theories to explain the growth and impact of mobile money. Having developed a new archival dataset that tracks mobile money deployment across 90 emerging economies during 16 years between 2000 and 2015, we address the question of relative economic impact of the banking and telecoms sectors in the provision of mobile money. We show that telecom groups and not banks are more likely to launch mobile money in countries where legal rights are weaker and credit information less prevalent. However, it is when mobile money is offered via a banking channel that the spillover effects on the economy are greater. Findings have significant implications for policy and strategy.

Item Type: Article
Official URL: https://academic.oup.com/icc
Additional Information: © 2019 The Authors
Divisions: Management
Subjects: T Technology > T Technology (General)
H Social Sciences > HG Finance
JEL classification: G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
M - Business Administration and Business Economics; Marketing; Accounting > M1 - Business Administration > M13 - Entrepreneurship
O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development > O33 - Technological Change: Choices and Consequences; Diffusion Processes
Date Deposited: 10 Sep 2019 16:54
Last Modified: 15 Sep 2019 23:10
URI: http://eprints.lse.ac.uk/id/eprint/101585

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