Institutional Environment and Financial Inclusion in Sub-Saharan Africa

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.

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