Mobile money innovation and global value chain participation: Evidence from developing countries

This study provides empirical insights on the effect of mobile money innovation on global value chain participation. Applying quantile estimation technique on the data of 90 developing economies between 2011 and 2018, we document that mobile money innovation has significant positive effect on participation in global value chains. Furthermore, our results reveal that economic and governance factors such as financial development, human capital development, tariff and distance are crucial variables that influence participation in global value chain. We recommend that friendly trade policies and investment in socioeconomic infrastructures and human capital development would help in facilitating the wide-spread adoption of mobile money innovations and enhance GVC participation.