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Mobile Money, Individuals’ Payments, Remittances, and Investments: Evidence from the Ashanti Region, Ghana

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  • Emmanuel Kwablah Apiors

    (Graduate Program in Sustainability Science Global Leadership Initiative (GPSS-GLI), The University of Tokyo, Kashiwa 277-8563, Japan)

  • Aya Suzuki

    (Department of International Studies, The University of Tokyo, Kashiwa 277-0882, Japan)

Abstract

While many studies that are focused on mobile money concern the effects of mobile money on consumption and informal risk-sharing, little evidence is provided on how mobile money influences payments and microbusiness investment for low-income people. We estimate the effects of access to mobile money on individuals’ payments and income-generating activities by using data from the Ashanti Region of Ghana. Based on propensity-score matching and propensity-score weighted regression, we find that participation in mobile money is not dependent on individuals’ financial status. We also observe that mobile-money users are likely to send and receive larger volumes of payments and remittances. We further find that mobile-money users are more likely to save higher amounts, invest more in education, microbusinesses, land, and buildings, and also consume more relative to non-users.

Suggested Citation

  • Emmanuel Kwablah Apiors & Aya Suzuki, 2018. "Mobile Money, Individuals’ Payments, Remittances, and Investments: Evidence from the Ashanti Region, Ghana," Sustainability, MDPI, vol. 10(5), pages 1-26, May.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:5:p:1409-:d:144359
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    1. Leo Van Hove, 2018. "Comment on Apiors, E.K.; Suzuki, A. Mobile Money, Individuals’ Payments, Remittances, and Investments: Evidence from the Ashanti Region, Ghana. Sustainability 2018, 10 , 1409," Sustainability, MDPI, vol. 10(8), pages 1-4, August.
    2. Alfonso Siano & Lukman Raimi & Maria Palazzo & Mirela Clementina Panait, 2020. "Mobile Banking: An Innovative Solution for Increasing Financial Inclusion in Sub-Saharan African Countries: Evidence from Nigeria," Sustainability, MDPI, vol. 12(23), pages 1-24, December.
    3. Atangana Ondoa, Henri & Ambombo Bella, Genevieve Lareine & Mbenga Bindop, Kunz Modeste, 2023. "Mobile money, family assistance and welfare in Cameroon," Telecommunications Policy, Elsevier, vol. 47(1).
    4. Valentina Vasile & Mirela Panait & Simona-Andreea Apostu, 2021. "Financial Inclusion Paradigm Shift in the Postpandemic Period. Digital-Divide and Gender Gap," IJERPH, MDPI, vol. 18(20), pages 1-28, October.
    5. Emmanuel Kwablah Apiors & Aya Suzuki, 2018. "Response to Comments by Leo Van Hove on “Mobile Money, Individuals’ Payments, Remittances, and Investments: Evidence from the Ashanti Region, Ghana” Sustainability 2018, 10 , 1409," Sustainability, MDPI, vol. 10(11), pages 1-3, November.
    6. Leo Van Hove & Antoine Dubus, 2019. "M-PESA and Financial Inclusion in Kenya: Of Paying Comes Saving?," Sustainability, MDPI, vol. 11(3), pages 1-26, January.
    7. Nwankwo Cosmas Anayochukwu & Kanyangale MacDonald Isaac & Abugu James Okechukwu, 2021. "The Basics of a Mobile Money-Based Financial Service: Perceptions of University Students in Nigeria," Foundations of Management, Sciendo, vol. 13(1), pages 209-218, January.
    8. Hiroyuki Egami & Tomoya Matsumoto, 2020. "Mobile Money Use and Healthcare Utilization: Evidence from Rural Uganda," Sustainability, MDPI, vol. 12(9), pages 1-34, May.
    9. Rilwan Sakariyahu & Fatima Oyebola Etudaiye-Muhtar & Rodiat Lawal & Olayinka Oyekola, 2023. "Financial technology and human development in Africa: The moderating impact of energy poverty," Discussion Papers 2302, University of Exeter, Department of Economics.
    10. Metzger, Martina & Were, Maureen & Pédussel Wu, Jennifer, 2022. "Financial inclusion, mobile money and regulatory architecture," IPE Working Papers 202/2022, Berlin School of Economics and Law, Institute for International Political Economy (IPE).
    11. Abubakari Ahmed & Eric Dompreh & Alexandros Gasparatos, 2019. "Human wellbeing outcomes of involvement in industrial crop production: Evidence from sugarcane, oil palm and jatropha sites in Ghana," PLOS ONE, Public Library of Science, vol. 14(4), pages 1-33, April.
    12. Oyebola Etudaiye-Muhtar, Fatima & Johan, Sofia & Lawal, Rodiat & Sakariyahu, Rilwan, 2024. "Fintech, human development and energy poverty in sub-Saharan Africa," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 91(C).
    13. 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).
    14. Emmanuel Kwablah Apiors & Aya Suzuki, 2023. "Effects of Mobile Money Education on Mobile Money Usage: Evidence from Ghana," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 35(3), pages 715-742, June.
    15. Patrick-Hervé Mbouombouo Mfossa, 2019. "Mobile Money-Driven Financial Inclusion and Financial Resilience in Sub-Saharan Africa: Insights from Cameroon [L’inclusion financière via le mobile money et résilience financière en Afrique Subsah," Post-Print hal-03622403, HAL.
    16. Lyons, Angela C. & Kass-Hanna, Josephine & Fava, Ana, 2022. "Fintech development and savings, borrowing, and remittances: A comparative study of emerging economies," Emerging Markets Review, Elsevier, vol. 51(PA).
    17. Xue Wang & Guangwen He, 2020. "Digital Financial Inclusion and Farmers’ Vulnerability to Poverty: Evidence from Rural China," Sustainability, MDPI, vol. 12(4), pages 1-18, February.
    18. James Atta Peprah & Clement Oteng & Joshua Sebu, 2020. "Mobile Money, Output and Welfare Among Smallholder Farmers in Ghana," SAGE Open, , vol. 10(2), pages 21582440209, June.
    19. Dennis Owusu Amofah & Junwu Chai, 2022. "Sustaining Consumer E-Commerce Adoption in Sub-Saharan Africa: Do Trust and Payment Method Matter?," Sustainability, MDPI, vol. 14(14), pages 1-20, July.
    20. Coffie, Cephas Paa Kwasi & Hongjiang, Zhao, 2023. "FinTech market development and financial inclusion in Ghana: The role of heterogeneous actors," Technological Forecasting and Social Change, Elsevier, vol. 186(PA).
    21. Simontinti Das & Amrita Chatterjee, 2021. "Role of ICT Dissemination and Digital Finance in Poverty Eradication and Income Inequality Reduction: A Sub-national Level Study from India," Working Papers 2021-210, Madras School of Economics,Chennai,India.

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