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The African Financial Development and Financial Inclusion Gaps

Author

Listed:
  • Franklin Allen
  • Elena Carletti
  • Robert Cull
  • Jun “Qj” Qian
  • Lemma Senbet
  • Patricio Valenzuela
Abstract
This paper investigates the African financial development and financial inclusion gaps relative to other peer developing countries. Using a set of variables related to financial development and inclusion, we first estimate the gaps between African countries and other developing countries with similar degrees of economic development. Then, we explore the determinants of financial development and inclusion and find that population density appears to be considerably more important for financial development and inclusion in Africa than elsewhere. We then show evidence that a recent innovation in financial services, mobile banking, has helped to overcome infrastructural problems and improve financial access. JEL CODES: G2; O1; R2. Key words: Financial development, financial inclusion, development gaps, Africa

Suggested Citation

  • Franklin Allen & Elena Carletti & Robert Cull & Jun “Qj” Qian & Lemma Senbet & Patricio Valenzuela, 2013. "The African Financial Development and Financial Inclusion Gaps," Documentos de Trabajo 305, Centro de Economía Aplicada, Universidad de Chile.
    • Handle: RePEc:edj:ceauch:305
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    References listed on IDEAS

    as
    1. Isaac Mbiti & David N. Weil, 2015. "Mobile Banking: The Impact of M-Pesa in Kenya," NBER Chapters, in: African Successes, Volume III: Modernization and Development, pages 247-293, National Bureau of Economic Research, Inc.
    2. Franklin Allen & Elena Carletti & Robert Cull & Jun QJ Qian & Lemma Senbet & Patricio Valenzuela, 2021. "Improving Access to Banking: Evidence from Kenya [A matter of experience? Understanding the decline in group lending]," Review of Finance, European Finance Association, vol. 25(2), pages 403-447.
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    7. William Easterly & Ross Levine, 1997. "Africa's Growth Tragedy: Policies and Ethnic Divisions," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(4), pages 1203-1250.
    8. Franklin Allen & Elena Carletti & Robert Cull & Jun QJ Qian & Lemma Senbet & Patricio Valenzuela, 0. "Improving Access to Banking: Evidence from Kenya," Review of Finance, European Finance Association, vol. 25(2), pages 403-447.
    9. Shawn Cole & Anna Paulson & Gauri Kartini Shastry, 2014. "Smart Money? The Effect of Education on Financial Outcomes," The Review of Financial Studies, Society for Financial Studies, vol. 27(7), pages 2022-2051.
    10. Franklin Allen & Elena Carletti & Robert Cull & Jun QJ Qian & Lemma Senbet, 2010. "The African Financial Development Gap," Economics Working Papers ECO2010/24, European University Institute.
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    More about this item

    Keywords

    financial development; financial inclusion; development gaps; africa;
    All these keywords.

    JEL classification:

    • G02 - Financial Economics - - General - - - Behavioral Finance: Underlying Principles

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