Macroeconomic Effects of Mobile Money in Nigeria
- Samuel Orekoya
- ( paper pages. 175 - 193 )
Abstract
Mobile money is a
technological innovation in the financial sector that provides numerous
benefits to an economy. Despite these perceived benefits, there are concerns
regarding the impact of this innovation on macroeconomic variables. This study therefore
employed data from 2008M1 to 2018M12 to test the responsiveness of some
macroeconomic variables to shocks from mobile money in Nigeria. Using the
Toda-Yamamoto model to test for the response of these variables to shocks, the impulse
response result shows that mobile money had short-run impact on macroeconomic
variables but was not significant in the long run. The variance decomposition
shows that output, interest rate, money supply and private sector credit
accounted for more variation in price than mobile money. It is logical to
conclude that mobile money modestly impacts macroeconomic variables in Nigeria.
Therefore, government /policymakers should design policies to regulate mobile
money transactions to guide macroeconomic variables in the desired direction to
achieve macroeconomic objectives.
Citation
Samuel Orekoya.
2022.
"Macroeconomic Effects of Mobile Money in Nigeria"
The Nigerian Journal of Economic and Social Studies,
64 (2): 175 - 193.
JEL Classification
E4, E5, E52, E58
