The Role of Financial Technology on Inequality-informal Economy Nexus
Margaret Rutendo Magwedere & Godfrey Marozva
What the paper says
The study examined the inequality-informality nexus and the mediating role of financial technology in this relationship across 19 African economies over 2012-2022. Using the pooled mean group approach (PMG), the long run and the short run relationship are determined. The study found that, in the long run, equality improves as informal activities increase. Although financial technology reduces inequality the persistent inequality appears to weaken the inequality reducing effects of financial technology as the moderating term in the long run. The results of the study strengthen the case for government policies to carefully consider the encouragement of using financial technology when the economies are rife with structural rigidities in the informal sector.
1 citation
Evidence weight
Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40
| F · citation impact | 0.16 × 0.4 = 0.06 |
| M · momentum | 0.53 × 0.15 = 0.08 |
| V · venue signal | 0.50 × 0.05 = 0.03 |
| R · text relevance † | 0.50 × 0.4 = 0.20 |
† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.