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Table 2 Determinants of the use of mobile money services: multinomial logit estimations

From: A study of the factors affecting mobile money penetration rates in the West African Economic and Monetary Union (WAEMU) compared with East Africa

Using no mobile money service (base category)

 

WAEMU countries

East African countries

Financial inclusion variables

One mobile money service

Two mobile money services

All three mobile money services

One mobile money service

Two mobile money services

All three mobile money services

RRR (95 % CI)

RRR (95 % CI)

RRR (95 % CI)

RRR (95 % CI)

RRR (95 % CI)

RRR (95 % CI)

Explanatory variables

Column 1

Column 2

Column 3

Column 4

Column 5

Column 6

Female

0.8495** (0.7221–0.9994)

0.7823** (0.6372–0.9602)

0.4312*** (0.2756–0.6743)

0.8094*** (0.6960–0.9412)

0.6692*** (0.5641–0.7939)

0.6944*** (0.5565–0.8663)

Age

1.0085 (0.9824–1.0351)

1.0721*** (1.0324–1.1132)

1.0973** (1.0108–1.1910)

1.0288** (1.0057–1.0523)

1.0501*** (1.0193–1.0818)

1.0665*** (1.0201–1.1150)

Age squared

0.9998 (0.9995–1.0001)

0.9991*** (0.9986–0.9995)

0.9987** (0.9976–0.9997)

0.9996*** (0.9993–0.9998)

0.9992*** (0.9988–0.9995)

0.9990*** (0.9984–0.9995)

Primary education

0.3712*** (0.2328–0.5916)

0.2135*** (0.1292–0.3524)

0.0661*** (0.0315–0.1382)

0.3871*** (0.2411–0.6213)

0.2587*** (0.1524–0.4387)

0.0801*** (0.0453–0.1415)

Secondary education

0.6843 (0.4338–1.0795)

0.5077*** (0.3136–0.8218)

0.2208*** (0.1149–0.4239)

0.6357** (0.4043–0.9997)

0.6232*(0.3766–1.0311)

0.3039***(0.1812–0.5093)

Income : poorest 20 %

0.8484 (0.6552–1.0984)

0.3994***(0.2748–0.5802)

0.6813 (0.3656–1.2695)

0.7775**(0.6109–0.9894)

0.3578***(0.2647–0.4835)

0.1383***(0.0850–0.2248)

Income : second 20 %

0.8652 (0.6837–1.0949)

0.5570***(0.4089–0.7586)

0.4484**(0.2359–0.8520)

1.0164 (0.8101–1.2753)

0.4743***(0.3604–0.6242)

0.3096***(0.2148–0.4462

Income : middle 20 %

0.9101 (0.7200–1.1504)

0.8233 (0.6208–1.0916)

0.7228 (0.4195–1.2454)

0.8190*(0.6601–1.0160)

0.5241***(0.4097–0.6704)

0.2652***(0.1892–0.3715)

Income : fourth 20 %

0.8644 (0.6975–1.0711)

0.8755 (0.6824–1.1232)

0.6387*(0.3921–1.0402)

0.8076**(0.6603–0.9876)

0.7849**(0.6317–0.9752)

0.4496***(0.3397–0.5949)

In workforce

1.2385**(1.0415–1.4727)

2.0852***(1.6484–2.6378)

1.8439***(1.1686–2.9095)

1.0170 (0.8552–1.2095)

1.6716***(1.3460–2.0758)

2.2287***(1.6282–3.0506)

Constant

1.3009 (0.6537–2.5886)

0.2253***(0.0941–0.5394)

.0539***(0.0094–0.3058)

2.4993***(1.2820–4.8724)

1.5275 (0.6900–3.3812)

0.8576 (0.3067–2.3972)

Observations

3,847

  

6,510

  

LR chi2

745.157

  

3,858.57

  

Prob > chi2

0.000

  

0.0000

  

Pseudo R2

0.0824

  

0.2348

  

Log likelihood

− 4,148.5069

  

-6,287.4787

  

Country fixed effects

Yes

  

Yes

  
  1. RRR=Relative Risk Ratio obtained by exponentiating the multinomial logit coefficients. CI=Confidence Interval. ***, ** and * denote significance threshold at the 1%, 5%, and 10%, respectively. The different columns give the estimation results of a regression of a financial inclusion indicator on a set of individual characteristics and country fixed effects. These financial inclusion indicators have been designed from the three basic mobile money services available, that is to say, sending remittances, receiving remittances and paying utility bills and which are: (1) using no mobile money service, (2) using one mobile money service only, (3) using two mobile money services, and (4) using all three mobile money services. In each cell of the Table is registered in the first position the relative risk ratio, then in the second position is registered the confidence interval in parentheses. The WAEMU countries’ sample includes Benin, Burkina Faso, Côte d’Ivoire, Mali, Niger, Senegal and Togo. The East African countries’ sample includes Ethiopia, Kenya, Madagascar, Malawi, Mauritius, Mozambique, Rwanda, Tanzania, Uganda, Zambia and Zimbabwe