Household welfare in the digital age: Assessing the effect of mobile money on household consumption volatility in developing countries

Ablam Estel Apeti

World Development, 2023, vol. 161, issue C

Abstract: Based on a sample of 76 developing countries over 1990–2019, we assess the effect of adopting mobile money on consumption volatility using entropy balancing. We reveal that countries with mobile money exhibit lower consumption volatility. After checking the robustness of this result, we show that the key drivers of mobile money’s stabilizing effect are financial inclusion and migrant remittances. Heterogeneity tests conducted indicate the sensitivity of the result to time and type of mobile money and to some structural factors, including trade openness, inflation, rural population, the rule of law, and level of development.

Keywords: Mobile money; Entropy balancing; Consumption volatility; Developing countries (search for similar items in EconPapers)
JEL-codes: D02 D64 E42 G20 G21 O16 O17 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (22)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:wdevel:v:161:y:2023:i:c:s0305750x2200300x

DOI: 10.1016/j.worlddev.2022.106110

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