Empirical Assessment of Mobile Accounting Tools on Rural Business Growth (2015 -2024)
Keywords:
Empirical Assessment, Mobile Accounting Tools, Rural Business GrowthAbstract
This study examined the impact of mobile accounting tools on rural business growth over the period from 2015 to 2024. The objective was to determine whether the adoption of mobile-based accounting applications significantly influences the performance of rural enterprises. It employed panel data drawn from selected rural small and medium-sized enterprises (SMEs), utilizing a combination of descriptive statistics, correlation analysis, panel data regression (fixed and random effects), Hausman test, dynamic panel estimation (Generalized Method of Moments), panel unit root and cointegration tests, error correction modeling, Granger causality analysis, as well as diagnostic and robustness tests. The findings revealed that mobile accounting tools have a positive and statistically significant effect on rural business growth, improving financial management, operational efficiency, and profitability. The Hausman test supported the use of the fixed effects model, while dynamic panel results confirmed the persistence of business growth and addressed potential endogeneity issues. Panel unit root and cointegration tests indicated the presence of a long-run equilibrium relationship between mobile accounting adoption and business growth, further supported by a significant error correction mechanism. Granger causality results established a unidirectional causal relationship running from mobile accounting tools to business growth. Additionally, the study found that complementary factors such as access to finance, education level, and infrastructure significantly enhance business performance. Diagnostic and robustness tests confirmed the reliability and stability of the results across alternative model specifications. The study concludes that mobile accounting tools are a critical driver of rural business development, with both short-run and long-run impacts. It recommends policies aimed at promoting digital financial inclusion, improving rural infrastructure, enhancing financial literacy, and supporting innovation in mobile accounting technologies to foster sustainable and inclusive economic growth.
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