Financial inclusion dynamics in WAEMU: Was digital technology the missing piece?

Figures & data

Figure 1. Financial inclusion dynamics in WAEMU.

Figure 2. Mobile financial services in WAEMU.

Table 1. Descriptive statistics

Variable		Mean	Std. Dev.	Min	Max	Observations
Financial Inclusion Rate (GUFS)	Overall	0.2967	0.2006	0.0086	0.8214	N = 96
	Between		0.1601	0.0616	0.5008	n = 8
	Within		0.1326	0.0779	0.6885	T = 12
Broad Money	Overall	1762.69	1662.22	53.2	8574.90	N = 96
	Between		1479.33	174.24	4905.44	n = 8
	Within		909.91	−1128.34	5432.15	T = 12
DMM	Overall	0.5625	-	0	1	N = 96
	Between		0.1240	0.3333	0.6666	n = 8
	Within		0.4848	−0.1041	1.2291	T = 12
Bank Branch	Overall	109.11	57.08	13.59	253.52	N = 96
	Between		47.01	33.02	175.19	n = 8
	Within		36.11	−1.28	187.43	T = 12
Bank Net Interest Rate	Overall	0.0411	0.0164	0	0.0824	N = 96
	Between		0.0097	0.0273	0.0558	n = 8
	Within		0.0136	0.0137	0.0901	T = 12
% of credit in GDP	Overall	0.1866	0.0782	0.0217	0.3786	N = 96
	Between		0.0690	0.0829	0.2785	n = 8
	Within		0.0436	0.0504	0.2867	T = 12
Population	Overall	1.26e+07	5,964,995	1,494,603	2.2e+07	N = 96
	Between		6,220,670	1,678,110	2.0e+07	n = 8
	Within		1,168,380	9,561,238	1.5e+07	T = 12
Phone owners per 100	Overall	58.272	32.92	3.53	149.06	N = 96
	Between		19.68	27.60	81.73	n = 8
	Within		27.22	−11.18	125.61	T = 12
Internet subscribers per 100	Overall	5.253	5.71	0.2940	38.44	N = 96
	Between		3.61	1.25	11.53	n = 8
	Within		4.60	−3.31	33.60	T = 12
Inflation rate	Overall	0.0220	0.0257	−0.0224	0.1130	N = 96
	Between		0.0038	0.0155	0.0257	n = 8
	Within		0.0254	−0.0185	0.1179	T = 12
Labour	Overall	4,876,951	2,189,155	624,090	8,540,700	N = 96
	Between		2,282,589	711,127.3	7,801,634	n = 8
	Within		430,666.9	3,636,702	5,660,476	T = 12
GDP per capita	Overall	276,061.6	172,965.2	384.2886	703,175.2	N = 96
	Between		182,209.2	536.3627	605,623.5	n = 8
	Within		23,685.68	200,783	373,613.3	T = 12

Table 2. Estimation results

VARIABLES	(1) Random Effect	(2) Arellano-Bover/ Bundell-Bond
	Financial Inclusion	Financial Inclusion
Lagged. Financial Inclusion		0.972***
		(0.0483)
Dummy Mobile Money	0.0599*	0.0257*
	(0.0486)	(0.0144)
Bank Net Interest Rate	−2.694	−0.213
	(1.875)	(0.268)
Lagged. Net Interest Rate		−0.238
		(0.198)
Credit part in GDP	1.160**	0.0928
	(0.517)	(0.0896)
Inflation	0.177	0.314***
	(0.216)	(0.0954)
Lagged. Inflation		0.218
		(0.182)
Broad Money (Log)	0.119	0.0181
	(0.0803)	(0.0230)
Phone subscribers (log)	−0.0845**	0.000469
	(0.0360)	(0.0109)
Internet users per 100 (log)	−0.0848	−0.0540***
	(0.0760)	(0.0166)
Interaction phone-internet (log)	0.0174*	0.0101**
	(0.0104)	(0.00395)
Labor (log)	−0.0548	0.0803*
	(0.0604)	(0.0436)
Bank Branch (log)	0.0673	0.00668
	(0.0500)	(0.0273)
GDP per capita (log)	−0.00461	−0.000645
	(0.0191)	(0.00369)
Population (log)	−0.0412	−0.0881**
	(0.0440)	(0.0386)
Constant	0.904	0.0753
	(0.941)	(0.249)
Observations	96	88
Number of Countries	8	8
Wald	304.06	9551.69
Arrelano-Bond test		0.62241
Sargan test		126.6768
Instruments		166
R^2	0.7856