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Impact of mobile money access on internal remittances, consumption expenditure and household welfare in Ghana

Impact of mobile money access on internal remittances, consumption expenditure and household... The purpose of this study is to examine the impact of mobile money access on internal remittances received, per capita consumption expenditure and welfare of household in Ghana.Design/methodology/approachThe study used data from the latest round of the Ghana Living Standards Survey (GLSS 7) and employed the propensity score matching technique to estimate average treatment effect between users and non-users of mobile money transfer services.FindingsThe study finds that using mobile money is welfare enhancing, particularly for poor households and the channel by which it impacts on welfare is through higher internal remittances received and per capita expenditure. The results from the average treatment effect indicate that mobile money users receive significantly higher remittances and consequently spend averagely higher on consumption than non-users.Research limitations/implicationsAlthough the data employed in this study is limited to one country, the findings support the financial inclusion role and developmental impact of mobile money transfer services. Hence, mobile money transfer services should be promoted and facilitated by the telecommunication and financial sector regulators.Originality/valueIn addition to making original contribution to the literature on the welfare impact of mobile money, the study's use of the propensity score matching is unique. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Economic and Administrative Sciences Emerald Publishing

Impact of mobile money access on internal remittances, consumption expenditure and household welfare in Ghana

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Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
1026-4116
DOI
10.1108/jeas-04-2020-0045
Publisher site
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Abstract

The purpose of this study is to examine the impact of mobile money access on internal remittances received, per capita consumption expenditure and welfare of household in Ghana.Design/methodology/approachThe study used data from the latest round of the Ghana Living Standards Survey (GLSS 7) and employed the propensity score matching technique to estimate average treatment effect between users and non-users of mobile money transfer services.FindingsThe study finds that using mobile money is welfare enhancing, particularly for poor households and the channel by which it impacts on welfare is through higher internal remittances received and per capita expenditure. The results from the average treatment effect indicate that mobile money users receive significantly higher remittances and consequently spend averagely higher on consumption than non-users.Research limitations/implicationsAlthough the data employed in this study is limited to one country, the findings support the financial inclusion role and developmental impact of mobile money transfer services. Hence, mobile money transfer services should be promoted and facilitated by the telecommunication and financial sector regulators.Originality/valueIn addition to making original contribution to the literature on the welfare impact of mobile money, the study's use of the propensity score matching is unique.

Journal

Journal of Economic and Administrative Sciences – Emerald Publishing

Published: Aug 6, 2021

Keywords: Propensity score matching; Financial inclusion; Remittances; Household survey; Mobile money transfer; Digital economy; M-money; M-wallet

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