The contribution of digital financial services to financial inclusion in Mozambique: an ARDL model approach

Fernandes, Carla; Borges, Maria Rosa; Caiado, Jorge

http://hdl.handle.net/10400.5/26285

Use this identifier to reference this record.

Name:	Description:	Size:	Format:
MRBORGES, CFERNANDES, JCAIADO.2021.pdf		1.15 MB	Adobe PDF	Download

Send Feedback

Authors

Fernandes, Carla

Borges, Maria Rosa

Caiado, Jorge

Abstract(s)

This paper analyses the contribution of digital financial services to financial inclusion in Mozambique, based on the Autoregressive Distributed Lag (ARDL) model, for the period from January 2011 to September 2019. We study two models to analyse the contribution of digital financial services to financial inclusion (measured by the number of bank accounts) in Mozambique. The first model uses traditional digital means of payments as independent variables, such as the volume of financial transactions through automated teller machines (ATMs), point-ofsales (POSs), electronic transfers of inter and intrabank funds, direct debit, and domestic and crossborder remittances. The second model considers innovative digital means of payments, such as internet banking, mobile banking and electronic money. We conclude that, excluding domestic remittances and direct debit, which present low levels of penetration in the country, and internet banking transactions, the remaining variables contribute to financial inclusion. Our results confirm the crucial role that digital financial services play in financial inclusion, particularly in improving access to and the use of services by the under-served population.

Keywords

Financial Inclusion Digital Financial Services ARDL Model Mozambique

URI

http://hdl.handle.net/10400.5/26285

Citation

Fernandes, Carla; Maria Rosa Borges and Jorge Caiado .(2021). “The contribution of digital financial services to financial inclusion in Mozambique: an ARDL model approach”. Applied Economics, Vol. 53, No. 3: pp. 400–409