Abstract
ABSTRACT This paper analyses the role of governance quality in the relationship between the Internet and financial inclusion in Sub-Saharan African countries. The study uses data from the International Monetary Fund (IMF) database for indicators of financial inclusion, World Development Indicators (WDI) for Internet users and World Governance Indicators (WGI) for governance indicators from 2004 to 2020. Analyzing the data using the System Generalized Method of Moments (SGMM), the results show that the Internet can be effectively complemented with the quality of governance to improve financial inclusion. Thresholds of governance that are needed for the Internet to promote financial inclusion are provided. Policies aimed at reinforcing the quality of governance in SSA countries could help consolidate Internet infrastructure to promote Internet usage and, in turn, improve financial inclusion. Other policy implications are discussed.
Published Version
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