nep-mfd New Economics Papers
on Microfinance
Issue of 2025–06–09
three papers chosen by
Marco Novarese, Università degli Studi del Piemonte Orientale


  1. (Digital) cash transfers, privacy and women's empowerment: Evidence from Uganda By Giulia Greco; Selim Gulesci; Pallavi Prabhakar; Munshi Sulaiman
  2. Mobile Money and the Future of Digital Currency: Evidence from Kenya By Morshed, Monzur
  3. Bridging Sustainability and Inclusion: Financial Access in the Environmental, Social, and Governance Landscape By Drago, Carlo; Costantiello, Alberto; Arnone, Massimo; Leogrande, Angelo

  1. By: Giulia Greco (London School of Hygiene and Tropical Medicine); Selim Gulesci (Department of Economics, Trinity College Dublin); Pallavi Prabhakar (BRAC Institute of Governance and Development); Munshi Sulaiman (BRAC Institute of Governance and Development)
    Abstract: We present evidence from a randomized controlled trial in Uganda where married women were randomly provided unconditional cash transfers. Among treated women, we randomized the modality of payment (in cash or mobile money) and whether the beneficiary's spouse was informed about the transfer or not. We find that using mobile money for cash transfers is more effective in improving women’s economic independence and decision-making power. In particular, women in the mobile money treatments have higher individual labor income and more of a say in household decisions. On the other hand, cash-based transfers are more effective in reducing intimate partner violence (IPV), especially when both partners are informed. This highlights a trade-off between improving the effectiveness of cash transfers on women’s economic empowerment versus reducing IPV. While providing cash transfers digitally is more effective in improving women's control over resources, this may lower their effectiveness in addressing IPV.
    Keywords: Digital finance, cash transfers, women's empowerment, domestic violence, privacy
    JEL: C93 D10 D82 J12
    Date: 2025–05
    URL: https://d.repec.org/n?u=RePEc:tcd:tcduee:tep0425
  2. By: Morshed, Monzur
    Abstract: This paper explores the dynamics of mobile money adoption and satisfaction in Kenya, using household survey data from the Research ICT Africa (RIA) series. The study examines demographic and socio-economic determinants of M-Pesa ownership and user satisfaction through logistic and Poisson regression models. Results suggest that traditional barriers such as gender, age, and education have limited influence on M-Pesa adoption and user satisfaction, indicating a narrowing digital divide. Although the intensity of mobile money usage is proxied by self-reported satisfaction scores rather than transaction frequency, the analysis highlights the platform’s widespread acceptance and usability. These findings carry important implications for the design and rollout of central bank digital currencies (CBDCs), particularly in low- and middle-income countries. Kenya’s experience with M-Pesa provides a valuable reference point for future digital currency innovations that are inclusive, trusted, and infrastructure-ready.
    Date: 2025–05–28
    URL: https://d.repec.org/n?u=RePEc:osf:osfxxx:msbz4_v1
  3. By: Drago, Carlo; Costantiello, Alberto; Arnone, Massimo; Leogrande, Angelo
    Abstract: This paper explores the correlation between financial inclusion and the Environment, Social, and Governance (ESG) aspects of sustainable development for a big panel of 103 developing nations over 12 years. Financial inclusion as a measure is taken through the Account Age variable capturing adults having access to formal financial institutions as a percentage. The analysis revolves around the three main ESG pillars each through panel data regressions complemented by instrumental variable (IV) approaches in addressing endogeneity concerns. In the Environment (E) dimension, we find conventional agricultural forms (e.g., extensive agricultural land areas and agriculture value added) as having a negative effect on financial inclusion, but the environmental modernization proxies—renewable energy utilization, food production, climate resilience, and areas under protection—exhibit positive and significant correlations. In the Social (S) dimension, development indicator variables like spending on education, internet penetration, life years at birth, sanitation, and gender equity emerge as strong predictors of higher financial inclusion, and labor market participation is found to have a negative effect, possibly due to the dynamics of employment in the informal sector. The Governance (G) analysis shows positive correlation with controlling corruption and innovation production (applications for patents) as arguments for increased financial access improving institutional transparency and economic ingenuity and a negative correlation with regulatory quality as a concern for capacity gaps in rapidly digitizing economies. Through the means of ESG-matched environmental instruments, this paper presents a unique cross-dimensional approach to sustainable finance and shows through counterfactual analysis under both average and counterfactual distributions that policies supporting financial inclusion can be a path to multiple benefits on the environmental sustainability, social equity, and governance effectiveness axes—key requirements for the success of the Sustainable Development Goals (SDGs) in the Global South.
    Keywords: Financial Inclusion, ESG Framework, Developing Countries, Instrumental Variables, Sustainable Development.
    JEL: C33 G21 H55 I38 O16 O44 Q56
    Date: 2025–05–23
    URL: https://d.repec.org/n?u=RePEc:pra:mprapa:124827

This nep-mfd issue is ©2025 by Marco Novarese. 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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