Mobile Money, Remittances and Rural Household Welfare: Panel Evidence from Uganda

Ggombe Kasim Munyegera and Tomoya Matsumoto
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Ggombe Kasim Munyegera: National Graduate Institute for Policy Studies

No 14-22, GRIPS Discussion Papers from National Graduate Institute for Policy Studies

Abstract: Mobile money service in Uganda has expanded rapidly, penetrating as much as over 30 percent of the adult population in just four years since its inception. We investigate the impact of this financial innovation on household welfare, using household survey panel data from rural Uganda. Results from our preferred specification reveal that adopting mobile money services increases household per capita consumption by 72 percent. The mechanism of this impact is the facilitation of remittances; user households are more likely to receive remittances, receive remittances more frequently and the total value received is significantly higher than that of non-user households. Our results are robust to a number of robustness checks. JEL (O16, O17, O33, I131)

Pages: 39 pages
Date: 2014-12
New Economics Papers: this item is included in nep-agr, nep-dev and nep-mfd
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Citations: View citations in EconPapers (15)

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