IDEAS home Printed from https://ideas.repec.org/a/eee/tefoso/v187y2023ics0040162522007156.html
   My bibliography  Save this article

Does mobile money contribute to reducing multidimensional poverty?

Author

Listed:
  • Djahini-Afawoubo, Dossè Mawussi
  • Couchoro, Mawuli Kodjovi
  • Atchi, Fambari Kokou

Abstract

This paper aims to analyse the effect of mobile money on multidimensional poverty reduction. To that end, the Alkire and Foster (2011) approach was used to compute the multidimensional poverty index. Then, an instrumental variable strategy was adopted to control for endogeneity bias due to a two-way relationship between poverty and mobile money. The paper also applied propensity score matching methods to check for robustness. The data studied originate from the FinScope (2016) database. With regard to the multidimensional poverty index, the results showed that ICT contributes most to multidimensional poverty, with rural residents exhibiting higher multidimensional poverty rates than urban ones. As for the effect of mobile money, the results robustly demonstrated that mobile money has a positive and statistically significant effect on multidimensional poverty reduction. This effect of mobile money on poverty reduction seems to be greater among rural residents, women and those who are illiterate.

Suggested Citation

  • Djahini-Afawoubo, Dossè Mawussi & Couchoro, Mawuli Kodjovi & Atchi, Fambari Kokou, 2023. "Does mobile money contribute to reducing multidimensional poverty?," Technological Forecasting and Social Change, Elsevier, vol. 187(C).
    • Handle: RePEc:eee:tefoso:v:187:y:2023:i:c:s0040162522007156
    DOI: 10.1016/j.techfore.2022.122194
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0040162522007156
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.techfore.2022.122194?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Sabina Alkire and Selim Jahan, 2018. "The New Global MPI 2018: Aligning with the Sustainable Development Goals," OPHI Working Papers ophiwp121.pdf, Queen Elizabeth House, University of Oxford.
    2. Joshua D. Angrist & Alan B. Krueger, 2001. "Instrumental Variables and the Search for Identification: From Supply and Demand to Natural Experiments," Journal of Economic Perspectives, American Economic Association, vol. 15(4), pages 69-85, Fall.
    3. Michael Lechner, 2002. "Program Heterogeneity And Propensity Score Matching: An Application To The Evaluation Of Active Labor Market Policies," The Review of Economics and Statistics, MIT Press, vol. 84(2), pages 205-220, May.
    4. Yawo Agbényégan Noglo, 2017. "Non-monetary poverty in Togo: a multidimensional approach," Review of Social Economy, Taylor & Francis Journals, vol. 75(2), pages 181-211, April.
    5. Ggombe Kasim Munyegera & Tomoya Matsumoto, 2018. "ICT for financial access: Mobile money and the financial behavior of rural households in Uganda," Review of Development Economics, Wiley Blackwell, vol. 22(1), pages 45-66, February.
    6. Dosse Mawussi Djahini-Afawoubo & Esso-Hanam Atake, 2018. "Extension of mandatory health insurance to informal sector workers in Togo," Health Economics Review, Springer, vol. 8(1), pages 1-13, December.
    7. J Paul Dunne & Elizabeth Kasekende, 2017. "Mobile Money and Household Consumption Patterns in Uganda," SALDRU Working Papers 210, Southern Africa Labour and Development Research Unit, University of Cape Town.
    8. Rashid Hassan & Patrick Birungi, 2011. "Social capital and poverty in Uganda," Development Southern Africa, Taylor & Francis Journals, vol. 28(1), pages 19-37.
    9. Alkire, Sabina & Foster, James, 2011. "Counting and multidimensional poverty measurement," Journal of Public Economics, Elsevier, vol. 95(7-8), pages 476-487, August.
    10. Xiuhua Wang & Jian Guan, 2017. "Financial inclusion: measurement, spatial effects and influencing factors," Applied Economics, Taylor & Francis Journals, vol. 49(18), pages 1751-1762, April.
    11. Hjelm, Lisa & Handa, Sudhanshu & de Hoop, Jacobus & Palermo, Tia, 2017. "Poverty and perceived stress: Evidence from two unconditional cash transfer programs in Zambia," Social Science & Medicine, Elsevier, vol. 177(C), pages 110-117.
    12. repec:diw:diwwpp:dp659 is not listed on IDEAS
    13. Komivi Afawubo & Mawuli K. Couchoro & Messan Agbaglah & Tchapo Gbandi, 2020. "Mobile money adoption and households’ vulnerability to shocks: Evidence from Togo," Applied Economics, Taylor & Francis Journals, vol. 52(10), pages 1141-1162, February.
    14. Johannes Tabi Atemnkeng & Andrew Wujung Vukenkeng, 2016. "Does social capital really determine poverty? Evidence from a Cameroon household survey," African Journal of Science, Technology, Innovation and Development, Taylor & Francis Journals, vol. 8(1), pages 97-110, March.
    15. William Jack & Tavneet Suri, 2014. "Risk Sharing and Transactions Costs: Evidence from Kenya's Mobile Money Revolution," American Economic Review, American Economic Association, vol. 104(1), pages 183-223, January.
    16. Akoété Ega Agbodji & Yélé Maweki Batana & Dénis Ouedraogo, 2015. "Gender inequality in multidimensional welfare deprivation in West Africa," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 42(11), pages 980-1004, November.
    17. Douglas Staiger & James H. Stock, 1997. "Instrumental Variables Regression with Weak Instruments," Econometrica, Econometric Society, vol. 65(3), pages 557-586, May.
    18. Ke-Mei Chen & Chao-Hsien Leu & Te-Mu Wang, 2019. "Measurement and Determinants of Multidimensional Poverty: Evidence from Taiwan," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 145(2), pages 459-478, September.
    19. Serge Ky & Clovis Rugemintwari & Alain Sauviat, 2018. "Does Mobile Money Affect Saving Behaviour? Evidence from a Developing Country," Journal of African Economies, Centre for the Study of African Economies, vol. 27(3), pages 285-320.
    20. Askar Ismailov & Albert Benson Kimaro & Hisahiro Naito, 2019. "The Effect of Mobile Money Usage on Borrowing, Saving, and Receiving Remittances: Evidence from Tanzania," Tsukuba Economics Working Papers 2019-002, Faculty of Humanities and Social Sciences, University of Tsukuba.
    21. Alkire, Sabina & Seth, Suman, 2015. "Multidimensional Poverty Reduction in India between 1999 and 2006: Where and How?," World Development, Elsevier, vol. 72(C), pages 93-108.
    22. Sabina Alkire, Selim Jahan, 2018. "The New Global MPI 2018: Aligning with the Sustainable Development Goals," OPHI Working Papers 121, Queen Elizabeth House, University of Oxford.
    23. Akoété Ega Agbodji & Yélé Maweki Batana & Dénis Ouedraogo, 2015. "Gender inequality in multidimensional welfare deprivation in West Africa," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 42(11), pages 980-1004, November.
    24. Malcolm Keswell & Justine Burns & Rebecca Thornton, 2012. "Evaluating the Impact of Health Programmes on Productivity," African Development Review, African Development Bank, vol. 24(4), pages 302-315.
    25. Sascha O. Becker & Marco Caliendo, 2007. "Sensitivity analysis for average treatment effects," Stata Journal, StataCorp LP, vol. 7(1), pages 71-83, February.
    26. repec:fth:prinin:455 is not listed on IDEAS
    27. Borga, Liyousew G. & D’Ambrosio, Conchita, 2021. "Social protection and multidimensional poverty: Lessons from Ethiopia, India and Peru," World Development, Elsevier, vol. 147(C).
    28. Enoch M Kikulwe & Elisabeth Fischer & Matin Qaim, 2014. "Mobile Money, Smallholder Farmers, and Household Welfare in Kenya," PLOS ONE, Public Library of Science, vol. 9(10), pages 1-13, October.
    29. Álvarez-Gamboa, Javier & Cabrera-Barona, Pablo & Jácome-Estrella, Hugo, 2021. "Financial inclusion and multidimensional poverty in Ecuador: A spatial approach," World Development Perspectives, Elsevier, vol. 22(C).
    30. Munyegera, Ggombe Kasim & Matsumoto, Tomoya, 2016. "Mobile Money, Remittances, and Household Welfare: Panel Evidence from Rural Uganda," World Development, Elsevier, vol. 79(C), pages 127-137.
    31. S. Streeten, Paul, 1979. "Basics needs: Premises and promises," Journal of Policy Modeling, Elsevier, vol. 1(1), pages 136-146, January.
    32. Alkire, Sabina & Roche, José Manuel & Vaz, Ana, 2017. "Changes Over Time in Multidimensional Poverty: Methodology and Results for 34 Countries," World Development, Elsevier, vol. 94(C), pages 232-249.
    33. Paola Ballon & Jean†Yves Duclos, 2016. "A Comparative Analysis of Multidimensional Poverty in Sudan and South Sudan," African Development Review, African Development Bank, vol. 28(S2), pages 132-161, October.
    34. Brigit Helms, 2006. "Access for All : Building Inclusive Financial Systems," World Bank Publications - Books, The World Bank Group, number 6973.
    35. Eduardo Polloni-Silva & Naijela da Costa & Herick Fernando Moralles & Mario Sacomano Neto, 2021. "Does Financial Inclusion Diminish Poverty and Inequality? A Panel Data Analysis for Latin American Countries," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 158(3), pages 889-925, December.
    36. George Okello Candiya Bongomin & Pierre Yourougou & John C. Munene, 2019. "Digital financial innovations in the twenty-first century," Journal of Economic and Administrative Sciences, Emerald Group Publishing Limited, vol. 36(3), pages 185-203, November.
    37. Migbaru Alamirew Workneh & Zerayehu Sime Eshete, 2021. "Household Level Non-Monetary Poverty in Ethiopia and its Driving Factors: a Multidimensional Approach with Panel Estimation," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 154(1), pages 145-168, February.
    38. Isaac Koomson & Renato A. Villano & David Hadley, 2020. "Effect of Financial Inclusion on Poverty and Vulnerability to Poverty: Evidence Using a Multidimensional Measure of Financial Inclusion," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 149(2), pages 613-639, June.
    39. Johannes Haushofer & Jeremy Shapiro, 2016. "The Short-term Impact of Unconditional Cash Transfers to the Poor: ExperimentalEvidence from Kenya," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 131(4), pages 1973-2042.
    40. Edward Miguel & Shanker Satyanath & Ernest Sergenti, 2004. "Economic Shocks and Civil Conflict: An Instrumental Variables Approach," Journal of Political Economy, University of Chicago Press, vol. 112(4), pages 725-753, August.
    41. Jacques Silber, 2011. "A comment on the MPI index," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 9(3), pages 479-481, September.
    42. World Bank, 2014. "Global Financial Development Report 2014 : Financial Inclusion," World Bank Publications - Books, The World Bank Group, number 16238.
    43. Riley, Emma, 2018. "Mobile money and risk sharing against village shocks," Journal of Development Economics, Elsevier, vol. 135(C), pages 43-58.
    44. Kwangbin Bae & Dongsook Han & Hosung Sohn, 2012. "Importance of Access to Finance in Reducing Income Inequality and Poverty Level," International Review of Public Administration, Taylor & Francis Journals, vol. 17(1), pages 55-77, April.
    45. Jenny C. Aker & Rachid Boumnijel & Amanda McClelland & Niall Tierney, 2016. "Payment Mechanisms and Antipoverty Programs: Evidence from a Mobile Money Cash Transfer Experiment in Niger," Economic Development and Cultural Change, University of Chicago Press, vol. 65(1), pages 1-37.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Osabutey, Ellis L.C. & Jackson, Terence, 2024. "Mobile money and financial inclusion in Africa: Emerging themes, challenges and policy implications," Technological Forecasting and Social Change, Elsevier, vol. 202(C).
    2. Sodokin, Koffi & Djafon, Joseph Kokouvi & Dandonougbo, Yevessé & Akakpo, Afi & Couchoro, Mawuli K. & Agbodji, Akoété Ega, 2023. "Technological change, completeness of financing microstructures, and impact on well-being and income inequality," Telecommunications Policy, Elsevier, vol. 47(6).
    3. Fan, Shuangshuang & Wei, Yuetong & Niu, Xiao & Balezentis, Tomas & Agnusdei, Leonardo, 2023. "Can FinTech development pave the way for a transition towards inclusive growth: Evidence from an emerging economy," Structural Change and Economic Dynamics, Elsevier, vol. 67(C), pages 439-458.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Qiu, Christina M., 2022. "Regionalized liquidity: A cross-country analysis of mobile money deployment and inflation in developing economies," World Development, Elsevier, vol. 152(C).
    2. Richard Chamboko, 2024. "Digital financial services adoption: a retrospective time-to-event analysis approach," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 10(1), pages 1-27, December.
    3. Alkire, Sabina & Oldiges, Christian & Kanagaratnam, Usha, 2021. "Examining multidimensional poverty reduction in India 2005/6–2015/16: Insights and oversights of the headcount ratio," World Development, Elsevier, vol. 142(C).
    4. Naito, Hisahiro & Yamamoto, Shinnosuke, 2022. "Is better access to mobile networks associated with increased mobile money adoption? Evidence from the micro-data of six developing countries," Telecommunications Policy, Elsevier, vol. 46(6).
    5. Miyajima, Ken, 2022. "Mobile phone ownership and welfare: Evidence from South Africa’s household survey," World Development, Elsevier, vol. 154(C).
    6. Carlos Sakyi‐Nyarko & Ahmad Hassan Ahmad & Christopher J. Green, 2022. "Investigating the well‐being implications of mobile money access and usage from a multidimensional perspective," Review of Development Economics, Wiley Blackwell, vol. 26(2), pages 985-1009, May.
    7. Hisahiro Naito & Shinnosuke Yamamoto, 2022. "Is Better Access to Mobile Networks Associated with Increased Mobile Money Adoption? Evidence from the Micro-data of Six Developing Countries," Tsukuba Economics Working Papers 2022-001, Faculty of Humanities and Social Sciences, University of Tsukuba.
    8. Valentina Rotondi & Francesco C. Billari, 2022. "Mobile Money and School Participation: Evidence from Africa," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 41(1), pages 343-362, February.
    9. Ali Akbar Barati & Milad Zhoolideh & Mostafa Moradi & Eydieh Sohrabi Mollayousef & Christine Fürst, 2022. "Multidimensional poverty and livelihood strategies in rural Iran," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(11), pages 12963-12993, November.
    10. Kass-Hanna, Josephine & Lyons, Angela C. & Liu, Fan, 2022. "Building financial resilience through financial and digital literacy in South Asia and Sub-Saharan Africa," Emerging Markets Review, Elsevier, vol. 51(PA).
    11. Ky, Serge Stéphane & Rugemintwari, Clovis & Sauviat, Alain, 2021. "Friends or Foes? Mobile money interaction with formal and informal finance," Telecommunications Policy, Elsevier, vol. 45(1).
    12. Abdinur Ali Mohamed & Fartun Ahmed Sheikh Mohamud, 2024. "The power of financial innovation in neutralizing carbon emissions: the case of mobile money in Somalia," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(9), pages 23151-23174, September.
    13. Gregory Mvogo & Christèle Gladisse Awounang Djouaka, 2022. "Effet du mobile money sur la résilience des ménages exerçant des activités génératrices de revenus au Cameroun," African Development Review, African Development Bank, vol. 34(4), pages 459-471, December.
    14. Jenny Aker & David A Carroll, 2022. "The State of Digital Financial Services in Francophone West Africa," Working Papers hal-03642499, HAL.
    15. N'dri, Lasme Mathieu & Kakinaka, Makoto, 2020. "Financial inclusion, mobile money, and individual welfare: The case of Burkina Faso," Telecommunications Policy, Elsevier, vol. 44(3).
    16. Luc Jacolin & Joseph Keneck Massil & Alphonse Noah, 2021. "Informal sector and mobile financial services in emerging and developing countries: Does financial innovation matter?," The World Economy, Wiley Blackwell, vol. 44(9), pages 2703-2737, September.
    17. Yiping Huang & Xue Wang & Xun Wang, 2020. "Mobile Payment in China: Practice and Its Effects," Asian Economic Papers, MIT Press, vol. 19(3), pages 1-18, Fall.
    18. Zaira Najam & Susan Olivia, 2021. "Does the impact of cash transfers differ across poverty measures? Evidence from Pakistan," Working Papers in Economics 21/09, University of Waikato.
    19. Espinoza-Delgado, José & Klasen, Stephan, 2018. "Gender and multidimensional poverty in Nicaragua: An individual based approach," World Development, Elsevier, vol. 110(C), pages 466-491.
    20. Khaufelo Raymond Lekobane & Keetie Roelen, 2020. "Leaving No One Behind: Multidimensional Child Poverty in Botswana," Child Indicators Research, Springer;The International Society of Child Indicators (ISCI), vol. 13(6), pages 2003-2030, December.

    More about this item

    Keywords

    Mobile money; Multidimensional poverty;

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:tefoso:v:187:y:2023:i:c:s0040162522007156. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.sciencedirect.com/science/journal/00401625 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.