Mobile Money and Financial Inclusion: The role of Institutional Quality

Abstract This paper investigates the role of institutional quality in the relationship between mobile money and financial inclusion in Ghana from 2014 to 2021. It uses annual data from Ghana on a bundle of four financial inclusion variables, six institutional quality indicators (i.e., rule of law, governance efficiency, control of corruption, voice and accountability, regulatory quality and political stability), and total volume of mobile money transaction in a year. The baseline regression was employed. The empirical results reveal that institutional quality and mobile money have direct impact on financial inclusion. Also, institutional quality plays positive and significant role in the relationship between mobile money and financial inclusion. Mobile phone subscription, financial development, inflation and GDPGR influence financial inclusion.