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

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  • Kikulwe, Enoch M.
  • Fischer, Elisabeth
  • Qaim, Matin

Abstract

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.

Suggested Citation

  • Kikulwe, Enoch M. & Fischer, Elisabeth & Qaim, Matin, 2013. "Mobile money, market transactions, and household income in rural Kenya," GlobalFood Discussion Papers 155847, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    • Handle: RePEc:ags:gagfdp:155847
    DOI: 10.22004/ag.econ.155847
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    Cited by:

    1. Beck, T.H.L. & Pamuk, H. & Uras, R.B. & Ramrattan, R., 2015. "Mobile Money, Trade Credit and Economic Development : Theory and Evidence," Other publications TiSEM 3d35ab30-05ef-4a31-8710-f, Tilburg University, School of Economics and Management.
    2. Beck, Thorsten & Pamuk, Haki & Ramrattan, Ravindra & Uras, Burak R., 2018. "Payment instruments, finance and development," Journal of Development Economics, Elsevier, vol. 133(C), pages 162-186.
    3. Thorsten Beck & Ravindra Ramrattan & Haki Pamuk & Burak R. Uras, 2016. "Payment Instruments, Enforceability and Development: Evidence from Mobile Money Technology," 2016 Meeting Papers 198, Society for Economic Dynamics.
    4. Ggombe Kasim Munyegera & Tomoya Matsumoto, 2015. "ICT for Financial Inclusion: Mobile Money and the Financial Behavior of Rural Households in Uganda," GRIPS Discussion Papers 15-20, National Graduate Institute for Policy Studies.

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