Mobile money, market transactions, and household income in rural Kenya

Mobile phone based money services have spread rapidly in many developing countries. We analyze micro level impacts using panel data from smallholder farmers in Kenya. Mobile money use has a large positive net impact on household income. One important pathway is through remittances, which contribute to income directly but also help to reduce risk and liquidity constraints, thus promoting agricultural commercialization. Mobile money users apply more purchased inputs, market a larger proportion of their output, and have higher farm profits. These results suggest that mobile money can help to overcome some of the important market access constraints of smallholder farmers.


Issue Date:
2013-08
Publication Type:
Working or Discussion Paper
DOI and Other Identifiers:
ISSN 2192-3248 (Other)
PURL Identifier:
http://purl.umn.edu/155847
Total Pages:
36
JEL Codes:
D13; O13; O16; O33; Q12
Series Statement:
22




 Record created 2017-04-01, last modified 2017-12-15

Fulltext:
Download fulltext
PDF

Rate this document:

Rate this document:
1
2
3
 
(Not yet reviewed)