Mobile money and household consumption patterns in Uganda

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Show simple item record Dunne, J Paul Kasekende, Elizabeth 2017-09-14T13:22:42Z 2017-09-14T13:22:42Z 2017-09
dc.identifier.citation Dunne, JP., Kasekende, E. (2017). Mobile money and household consumption patterns in Uganda. Cape Town: SALDRU, UCT. (SALDRU Working Paper Number 210)
dc.identifier.isbn 978-1-928281-71-9
dc.description Classification-JEL: 033, D12 en_US
dc.description.abstract Financial services in low income countries are often not well developed, thus, individuals rely heavily on informal means of financial services to send, receive and save money, with a large number of the population unbanked. Mobile money, a type of financial innovation, enables individuals to transfer, deposit and save money using cell phone technology. It not only has the potential to improve access to financial services but could also have an effect on household consumer behaviour and improve individuals' livelihoods. This paper investigates the difference in consumption patterns between mobile money users and non-users in Uganda, one of the countries that have seen significant increases in mobile money usage, since its introduction in 2009. It is based on the Financial Inclusion Tracker Surveys (FITS) household level data that was conducted in 2012. Using ordinary least squares and seemingly unrelated regression estimation techniques, the results suggests that mobile money users are less likely to spend on food, a necessity, and more likely to spend on luxury goods, than non-users. In addition, mobile money users are more likely to receive more remittances and, as a result, they are able to spend more efficiently on particular commodities than non-users. This suggests that mobile money could indeed potentially improve individuals' livelihoods. en_US
dc.language.iso en en_US
dc.relation.ispartofseries Saldru Working Papers;210
dc.subject Mobile money en_US
dc.subject Consumption patterns en_US
dc.title Mobile money and household consumption patterns in Uganda en_US
dc.type Working Paper en_US

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