Savings Constraints and Microenterprise Development: Evidence from a Field Experiment in Kenya

Pascaline Dupas and Jonathan Robinson

American Economic Journal: Applied Economics, 2013, vol. 5, issue 1, 163-92

Abstract: Does limited access to formal savings services impede business growth in poor countries? To shed light on this question, we randomized access to noninterest-bearing bank accounts among two types of self-employed individuals in rural Kenya: market vendors (who are mostly women) and men working as bicycle taxi drivers. Despite large withdrawal fees, a substantial share of market women used the accounts, were able to save more, and increased their productive investment and private expenditures. We see no impact for bicycle taxi drivers. These results imply significant barriers to savings and investment for market women in our study context. (JEL D14, G21, J16, J23, O12, O14, O16)

JEL-codes: D14 G21 J16 J23 O12 O14 O16 (search for similar items in EconPapers)
Date: 2013
Note: DOI: 10.1257/app.5.1.163
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Citations: View citations in EconPapers (357)

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Related works:
Working Paper: Savings Constraints and Microenterprise Development: Evidence from a Field Experiment in Kenya (2012)
Working Paper: Savings Constraints and Microenterprise Development: Evidence from a Field Experiment in Kenya (2009)
Working Paper: Savings Constraints and Microenterprise Development: Evidence from a Field Experiment in Kenya (2009)
Working Paper: Savings Constraints and Microenterprise Development: Evidence from a Field Experiment in Kenya (2008)
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