Does innovation matter for firm’s financial inclusion? Evidence from Enterprise Surveys in Cameroon
Downloads
This study aims at evaluating the impacts of innovation on financial inclusion in Cameroon. This specifically involves evaluating the effects of innovation on access, availability, use and the composite index of financial inclusion of companies in Cameroon. To achieve these goals, we used data from the World Bank (Enterprise Survey) from a survey of 361 manufacturing and service companies in 2016. Using the probit model, several results were obtained. (i) The more the company’s new products or services are new to its main market, and the more it invests in Research & Development activities, the more access it has to financial services; (ii) the more the company invests in Research & Development, the more it has overdraft or overdraft facilities; (iii) the more a company invests in Research & Development, the more it is financially included. Thus, we can recommend to Cameroonian companies to invest more in Research & Development in order to benefit from financial services from financial institutions.
Downloads
Aghion, P., Bond, S., Klemm, A., & Marinescu, I. (2004). Technology and financial structure : Are innovative firms different? Journal of the European Economic Association, 2(2‑3), 277‑288.
Agyekum, F. K., Reddy, K., Wallace, D., & Wellalage, N. H. (2021). Does technological inclusion promote financial inclusion among SMEs? Evidence from South-East Asian (SEA) countries. Global Finance Journal, 100618.
Ajide, K. B. (2017). Determinants of financial inclusion in Sub-Saharan Africa countries : Does institutional infrastructure matter? CBN Journal of Applied Statistics, 8(2), 69‑89.
Ali, A. (1994). Pioneering versus incremental innovation : Review and research propositions. Journal of product innovation management, 11(1), 46‑61.
Allen, F., & Santomero, A. M. (1997). The theory of financial intermediation. Journal of banking & finance, 21(11‑12), 1461‑1485.
Bah, R., & Dumontier, P. (2001). R&D intensity and corporate financial policy : Some international evidence. Journal of Business Finance & Accounting, 28(5‑6), 671‑692.
Beck, T. (2016). Financial Inclusion–Measuring progress and progress in measuring. This paper was written for the Fourth IMF Statistical Forum “Lifting the Small Boats: Statistics for Inclusive Growth. Cass Business School, City, University of London, CEPR, and CESifo.
Beck, T., & De la Torre, A. (2006). The basic analytics of access to financial services. WB.
Boyd, J. H., & Smith, B. D. (1998). The evolution of debt and equity markets in economic development. Economic Theory, 12(3), 519-560.
Bruhn, M., & Love, I. (2014). The real impact of improved access to finance : Evidence from Mexico. The Journal of Finance, 69(3), 1347‑1376.
Cameroon—Enterprise Survey 2016 (ES 2016) | Data Catalog. (s. d.).
Chiaromonte, F. (2002). Innovation and R&D management : Are new paradigms observable? International Journal of Technology Management, 23(5), 374‑409.
De Mel, S., McKenzie, D., & Woodruff, C. (2013). The demand for, and consequences of, formalization among informal firms in Sri Lanka. American Economic Journal: Applied Economics, 5(2), 122‑150.
Demirel, P., & Mazzucato, M. (2012). Innovation and firm growth : Is R&D worth it? Industry and Innovation, 19(1), 45‑62.
Demirgüc-Kunt, A., Demirgüc-Kunt, A., & Levine, R. (2008). Finance and economic opportunity. World Bank Washington, DC.
Demirgüc-Kunt, A., Klapper, L., Singer, D., Ansar, S., & Hess, J. (2020). The Global Findex Database 2017 : Measuring financial inclusion and opportunities to expand access to and use of financial services. The World Bank Economic Review, 34(Supplement_1), S2‑S8.
Diamond, D. W. (1984). Financial intermediation and delegated monitoring. The review of economic studies, 51(3), 393‑414.
Evans, O. (2016). Determinants of financial inclusion in Africa : A dynamic panel data approach.
Farazi, S. (2014). Informal firms and financial inclusion : Status and determinants. Journal of international commerce, Economics and policy, 5(03), 1440011.
Freel, M. S. (2007). Are small innovators credit rationed? Small Business Economics, 28(1), 23‑35.
Freeman, C. (1994). The economics of technical change. Cambridge journal of economics, 18(5), 463‑514.
Guiso, L. (1998). High-tech firms and credit rationing. Journal of Economic Behavior & Organization, 35(1), 39‑59.
Han, R., & Melecky, M. (2013). Financial inclusion for financial stability : Access to bank deposits and the growth of deposits in the global financial crisis. The World Bank.
Hosmer Jr, D. W., Lemeshow, S., & Sturdivant, R. X. (2013). Applied logistic regression (Vol. 398). John Wiley & Sons.
Karlan, D., Kendall, J., Mann, R., Pande, R., Suri, T., & Zinman, J. (2016). Research and impacts of digital financial services. National Bureau of Economic Research.
Kim, D.-W., Yu, J.-S., & Hassan, M. K. (2018). Financial inclusion and economic growth in OIC countries. Research in International Business and Finance, 43, 1‑14.
Mai, A. N., Van Vu, H., Bui, B. X., & Tran, T. Q. (2019). The lasting effects of innovation on firm profitability : Panel evidence from a transitional economy. Economic research-Ekonomska istraživanja, 32(1), 3411‑3430.
McKenzie, D., & Sakho, Y. S. (2010). Does it pay firms to register for taxes? The impact of formality on firm profitability. Journal of Development Economics, 91(1), 15‑24.
Napolitano, G. (1991). Industrial research and sources of innovation : A cross-industry analysis of Italian manufacturing firms. Research Policy, 20(2), 171‑178.
Nkoa, B. E. O., & Song, J. S. (2020). Does institutional quality affect financial inclusion in Africa? A panel data analysis. Economic Systems, 44(4), 100836.
OECD (2005), The Measurement of Scientific and Technological Activities, Oslo Manual: Guidelines for Collecting and Interpreting Innovation Data, 3rd Ed., Paris, France: Organisation for Economic Co-operation and Development (OECD).
Ogubazghi, S. K., & Muturi, W. (2014). The effect of age and educational level of owner/managers on SMMEs’ access to bank loan in Eritrea : Evidence from Asmara City. American journal of industrial and business management, 4(11), 632.
Pradhan, R. P., Arvin, M. B., Nair, M. S., Hall, J. H., & Bennett, S. E. (2021). Sustainable economic development in India : The dynamics between financial inclusion, ICT development, and economic growth. Technological Forecasting and Social Change, 169, 120758.
Sarma, M., & Pais, J. (2011). Financial inclusion and development. Journal of international development, 23(5), 613‑628.
Savignac, F., & Sevestre, P. (2006). Bank loans : Do innovative firms face specific financial constraints. Citeseer.
Schumpeter, J. (1934). The theory of economic development Harvard University Press. Cambridge, MA.
Sethy, S. K. (2016). Developing a financial inclusion index and inclusive growth in India. Theoretical and applied economics, 23(2), 607.
Sharpe, S. A. (1990). Asymmetric information, bank lending, and implicit contracts : A stylized model of customer relationships. The journal of finance, 45(4), 1069‑1087.
Sirilli, G., & Evangelista, R. (1998). Technological innovation in services and manufacturing : Results from Italian surveys. Research policy, 27(9), 881‑899.
Stiglitz, J. E., & Weiss, A. (1981). Credit rationing in markets with imperfect information. The American economic review, 71(3), 393‑410.
Swamy, V. (2014). Financial inclusion, gender dimension, and economic impact on poor households. World development, 56, 1‑15.
Talom, F. S. G., & Tengeh, R. K. (2020). The impact of mobile money on the financial performance of the SMEs in Douala, Cameroon. Sustainability, 12(1), 183.
Walker, R. M. (2004). Innovation and organisational performance : Evidence and a research agenda. Advanced Institute of Management Research Paper, 002.
World Bank Enterprise Survey Database (2016). https://www.enterprisesurveys.org/en/enterprisesurveys.
Copyright (c) 2022 International Journal of Scientific Research and Management
This work is licensed under a Creative Commons Attribution 4.0 International License.
