Does mobile phone proficiency contribute to stock market participation? The role of payment convenience, liquidity, and social interaction

IF 4.2 2区经济学 Q1 ECONOMICS

Economic Modelling Pub Date : 2024-12-26 DOI:10.1016/j.econmod.2024.106988

Shumaila Fatima, Madhumita Chakraborty

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Abstract

Limited stock market participation is a matter of concern for both academia and policymakers, whereas the role of mobile devices in financial inclusion has gained increasing attention. Existing literature has identified various factors of stock market participation (SMP), yet the critical intersection between technology and economy, particularly mobile phone proficiency (MPP), remains underexplored. This study utilizes data from the 2018 Financial Inclusion Insights (FII) survey of India, funded by the Bill and Melinda Gates Foundation, to examine the impact of MPP on SMP. Results suggest that MPP has a positive influence on SMP, with payment convenience, liquidity, and social interaction being essential channels in this mechanism. Our findings are robust to alternate measures and instrumental variable analysis. The outcomes remain consistent on using financial market participation (FMP) as the dependent variable. The results underscore the need for policy measures to enhance proficiency in using mobile phones to promote SMP.

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来源期刊

Economic Modelling ECONOMICS-

CiteScore

8.00

自引率

10.60%

发文量

295

期刊介绍： Economic Modelling fills a major gap in the economics literature, providing a single source of both theoretical and applied papers on economic modelling. The journal prime objective is to provide an international review of the state-of-the-art in economic modelling. Economic Modelling publishes the complete versions of many large-scale models of industrially advanced economies which have been developed for policy analysis. Examples are the Bank of England Model and the US Federal Reserve Board Model which had hitherto been unpublished. As individual models are revised and updated, the journal publishes subsequent papers dealing with these revisions, so keeping its readers as up to date as possible.