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?M-payment use and remittances in developing countries: a theoretical analysis?

Éric Darmon, Laetitia Chaix and Dominique Torre ()

Revue d'économie industrielle, 2016, vol. n° 156, issue 4, 159-183

Abstract: ?Many developing countries are characterized by high levels of remittances and low levels of financial inclusion. In this context, introduction of M-payment services can be seen as a means of improving both financial inclusion and remittance levels. To our knowledge, M-payments and remittances so far have been studied separately?; in this paper, we investigate their interplay by analyzing how domestic use of M-payment services alters individual remittance decisions, and thus impact on aggregate remittance flows and welfare. We consider a theoretical model which accounts for both the decision to send a remittance and the remittance receivers? use thereof. We find that M-payment use has a positive effect on aggregate remittance flows and also a favorable impact on welfare. However, we find that once introduced, the price of M-payment services can have unpredictable effects. ?

Keywords: mobile-payment; M-payment; remittance flows (search for similar items in EconPapers)
Date: 2016
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