Social network effects on mobile money adoption in Uganda

Conrad Murendo, Meike Wollni, Alan de Brauw and Nicholas Mugabi

No 198541, GlobalFood Discussion Papers from Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development

Abstract: Social networks play a vital role in generating social learning and information exchange that can drive the diffusion of new financial innovations. This is articularly relevant for developing countries where education, extension and financial information services are underprovided. The recent introduction of mobile money in Africa represents a case where imperfect financial markets, weak extension services and information asymmetries limit the ability of rural households to make informed decisions to take advantage of mobile money innovation. This article identifies the role of social networks in the adoption of mobile money in Uganda. Using data from a survey of 477 rural households, a probit model is estimated controlling for household characteristics, correlated effects, and other possible information sources. Results suggest that learning within social networks helps disseminate information about mobile money and has enhanced its adoption. Compared to poor households, non-poor households rely more on social networks for information about mobile money. Mobile money adoption is likely to be enhanced if promotion programs reach more social networks.

Keywords: International Development; Research and Development/Tech Change/Emerging Technologies (search for similar items in EconPapers)
Pages: 46
Date: 2015-02
New Economics Papers: this item is included in nep-afr, nep-dev, nep-ino, nep-mon, nep-net and nep-soc
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Related works:
Journal Article: Social Network Effects on Mobile Money Adoption in Uganda (2018)
Working Paper: Social network effects on mobile money adoption in Uganda (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:gagfdp:198541

DOI: 10.22004/ag.econ.198541

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