Browsing by Author "Campbell Omolara"

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    Digital Inclusion and Financial Sector Growth in Selected African Countries
    (Lead City Journal of the Social Sciences (LCJSS), Volume 9 (No. 3), Nov. 2024, 2024-11) Campbell Omolara; Taliat Olayinka Emiola; Ojo Ezekiel
    Many countries, including African nations, are now embracing to modern technology and digitalisation of their economies through internet resources. This study seeks to determine whether digital inclusion contributes to the growth of financial system in African countries by examining both money and capital market variables. The study obtains data from World Bank Development Indicators and the international Monetary Fund database for 8 African countries accross the four regional blocks from 2000 to 2022. The FMOLS technique is employed to perform multiple regressions of financial sector variables on digital inclusion variables. Findings indicate that the proportion of internet users has positive and significant effect on commercial bank branch expansion in the money market and market capitalisation in the capital market. Mobile cellular subscriptions are also found to have apositive and significant effect on commercial bank branch expansion and stock traded. Additionally, the deposit interest rate has positive and significant effect on credit to private sector in the money market and market capitalisation in the capital market, while it is insignificant effect on commercial bank branch expansion and stock traded in the stock exchange. The study recommends that digital infrastructure should be upgraded in African countries to meet global requirements in order to maximise financial sector’s potential benefits from worldwide digitalisation and technological transformation.
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    Digital Inclusion and Financial Sector Growth in Selected African Countries
    (LCU, 2024-11) Campbell Omolara; Taliat Olayinka Emiola; Ojo Ezekiel
    Many countries, including African nations, are now embracing to modern technology and digitalisation of their economies through internet resources. This study seeks to determine whether digital inclusion contributes to the growth of financial system in African countries by examining both money and capital market variables. The study obtains data from World Bank Development Indicators and the international Monetary Fund database for 8 African countries accross the four regional blocks from 2000 to 2022. The FMOLS technique is employed to perform multiple regressions of financial sector variables on digital inclusion variables. Findings indicate that the proportion of internet users has positive and significant effect on commercial bank branch expansion in the money market and market capitalisation in the capital market. Mobile cellular subscriptions are also found to have apositive and significant effect on commercial bank branch expansion and stock traded. Additionally, the deposit interest rate has positive and significant effect on credit to private sector in the money market and market capitalisation in the capital market, while it is insignificant effect on commercial bank branch expansion and stock traded in the stock exchange. The study recommends that digital infrastructure should be upgraded in African countries to meet global requirements in order to maximise financial sector’s potential benefits from worldwide digitalisation and technological transformation.
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    Towards Poverty Reduction in Sub-Saharan Africa: Does Digitalization Play a Role?
    (Lead City Journal of the Social Sciences (LCJSS), Volume 9 (No. 1), JUNE. 2024, 2024-06) Aderinto Esther; Campbell Omolara
    There has been an increasing level of poverty in Sub-Saharan Africa (SSA) as the region accommodates the largest number of poor people in the world. Digitalization has been identified as an important tool for poverty alleviation, inclusive and sustainable economic growth through mechanisms such as education, health, financial inclusion, among others. This study examines the direct and indirect effects of digitalization on poverty reduction through education, health and financial access in SSA countries. The Pooled Ordinary Least Square Regression, Fixed Effect, Random Effect Regression as well as the System Generalized method of Moments technique which controls for endogeneity of regressors and does not eliminate cross-country variations was employed for 45 SSA countries from 2000-2020. Data is sourced from World Development Indicator (WDI). Results showed that for education, digital use in terms of internet access has no significant effect on poverty in SSA. However, digital access measured by mobile subscription has a significant effect on poverty. For the health channel, internet use and mobile subscriptions increase poverty in SSA. The same findings relate to the financial access channel of poverty reduction. The study, therefore, recommends that digital services should be provided at lower cost and infrastructures that support the use of digital services be made readily available for SSA countries.