nep-mfd New Economics Papers
on Microfinance
Issue of 2016‒08‒14
three papers chosen by
Aastha Pudasainee and Olivier Dagnelie

  1. A pathway to financial inclusion: mobile money and individual Savings in Uganda By Mayanja, Musa; Adong, Annet
  2. Mobile Money and Risk Sharing Against Aggregate Shocks By Emma Riley
  3. The role of contracts in improving access to credit in the smallholder livestock sector of Swaziland By Xolile Mamba, Tangetile

  1. By: Mayanja, Musa; Adong, Annet
    Abstract: This study provides a micro perspective on the impact that mobile money services have on an individual’s saving behavior using 2013 Uganda FinScope data. The results show that although saving through mobile phones is not a common practice in Uganda, being a registered mobile money user increases the likelihood of saving with mobile money. Using mobile money to save is more prevalent in urban areas and in the central region than in other regions. This can be explained by several factors. First, rural dwellers on average tend to have lower incomes and thus have a lower propensity to save compared with their urban counterparts. Second, poor infrastructure in rural areas in terms of the lack of electricity and poor telecommunication network coverage may limit the use of mobile phones and consequently the use of mobile money as a saving mechanism. Overall, the use of mobile money as a saving mechanism is still very low, which could be partly explained by legal limitations that do not incorporate mobile finance services into mobile money. The absence of interest payments on mobile money savings may also act as a disincentive to save through this mechanism. Given the emerging mobile banking services, there is need to create greater awareness and to enhance synergies between telecoms companies and commercial banks.
    Keywords: Mobile Money, Financial Inclusion, Savings, Uganda, Community/Rural/Urban Development, Financial Economics, Labor and Human Capital,
    Date: 2016–03
  2. By: Emma Riley
    Abstract: Households in developing countries have gained increased access to remittances through the recent introduction of mobile money services. While the benefits of improved risk sharing to the remittance receiver have been examined in past research, benefits to the wider community have not been looked into. I examine the impact of mobile money services on consumption smoothing after an aggregate shock for both users of mobile money and for household that don't use mobile money but who reside in villages with users. This allows me to determine the extent that remittances received via mobile money are shared within villages in which I cannot reject perfect risk sharing. Using a difference-in-difference fixed effects specication, I find that while having other mobile money users in the village increases the per capita consumption of the entire village, after an aggregate shock it is only users of mobile money who are able to prevent a drop in their consumption.
    Keywords: risk sharing; mobile money; Tanzania
    JEL: O16 O17 O33
    Date: 2016
  3. By: Xolile Mamba, Tangetile
    Abstract: Submitted in partial fulfilment of the requirements for the degree of Master of Science in Agriculture (Agricultural Economics) in the Faculty of Natural and Agricultural Sciences, University of Pretoria. Advisors: Professor Charles Machethe and Dr Nadhem Mtimet (ILRI)
    Keywords: Livestock Production/Industries,
    Date: 2016–07

This nep-mfd issue is ©2016 by Aastha Pudasainee and Olivier Dagnelie. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
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