Does Mobile Money Use Increase Firms' Investment? : Evidence from Enterprise Surveys in Kenya, Uganda, and Tanzania

Private investment can be an important engine of economic growth in East African countries, which, despite recent growth rates, are still plagued with adverse economic conditions. Against this backdrop, there has been substantial penetration of mob...

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Main Authors:	Islam, Asif, Muzi, Silvia, Rodriguez Meza, Jorge Luis
Format:	Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2016
Subjects:	mobile money financial development investment firms
Online Access:	http://documents.worldbank.org/curated/en/491931479153921241/Does-mobile-money-use-increase-firms-investment-evidence-from-enterprise-Surveys-in-Kenya-Uganda-and-Tanzania http://hdl.handle.net/10986/25692

id	okr-10986-25692
recordtype	oai_dc
spelling	okr-10986-256922021-06-08T14:42:46Z Does Mobile Money Use Increase Firms' Investment? : Evidence from Enterprise Surveys in Kenya, Uganda, and Tanzania Islam, Asif Muzi, Silvia Rodriguez Meza, Jorge Luis mobile money financial development investment firms Private investment can be an important engine of economic growth in East African countries, which, despite recent growth rates, are still plagued with adverse economic conditions. Against this backdrop, there has been substantial penetration of mobile money, moving beyond simple person-to-person exchanges toward adoption by private firms. This study explores whether there is a relationship between firm adoption of mobile money and firm investment. Using firm-level data that are nationally representative of the private sector in three East African countries -- Kenya, Tanzania, and Uganda -- a positive relationship is found between mobile money use and the probability of a firm’s purchase of fixed assets. This relationship is attributed to reduced transaction costs, increased liquidity, and increased credit worthiness associated with the use of mobile phone financial services. 2016-12-06T22:11:57Z 2016-12-06T22:11:57Z 2016-11 Working Paper http://documents.worldbank.org/curated/en/491931479153921241/Does-mobile-money-use-increase-firms-investment-evidence-from-enterprise-Surveys-in-Kenya-Uganda-and-Tanzania http://hdl.handle.net/10986/25692 English en_US Policy Research Working Paper;No. 7890 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Africa East Africa Kenya Tanzania Uganda
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	mobile money financial development investment firms
spellingShingle	mobile money financial development investment firms Islam, Asif Muzi, Silvia Rodriguez Meza, Jorge Luis Does Mobile Money Use Increase Firms' Investment? : Evidence from Enterprise Surveys in Kenya, Uganda, and Tanzania
geographic_facet	Africa East Africa Kenya Tanzania Uganda
relation	Policy Research Working Paper;No. 7890
description	Private investment can be an important engine of economic growth in East African countries, which, despite recent growth rates, are still plagued with adverse economic conditions. Against this backdrop, there has been substantial penetration of mobile money, moving beyond simple person-to-person exchanges toward adoption by private firms. This study explores whether there is a relationship between firm adoption of mobile money and firm investment. Using firm-level data that are nationally representative of the private sector in three East African countries -- Kenya, Tanzania, and Uganda -- a positive relationship is found between mobile money use and the probability of a firm’s purchase of fixed assets. This relationship is attributed to reduced transaction costs, increased liquidity, and increased credit worthiness associated with the use of mobile phone financial services.
format	Working Paper
author	Islam, Asif Muzi, Silvia Rodriguez Meza, Jorge Luis
author_facet	Islam, Asif Muzi, Silvia Rodriguez Meza, Jorge Luis
author_sort	Islam, Asif
title	Does Mobile Money Use Increase Firms' Investment? : Evidence from Enterprise Surveys in Kenya, Uganda, and Tanzania
title_short	Does Mobile Money Use Increase Firms' Investment? : Evidence from Enterprise Surveys in Kenya, Uganda, and Tanzania
title_full	Does Mobile Money Use Increase Firms' Investment? : Evidence from Enterprise Surveys in Kenya, Uganda, and Tanzania
title_fullStr	Does Mobile Money Use Increase Firms' Investment? : Evidence from Enterprise Surveys in Kenya, Uganda, and Tanzania
title_full_unstemmed	Does Mobile Money Use Increase Firms' Investment? : Evidence from Enterprise Surveys in Kenya, Uganda, and Tanzania
title_sort	does mobile money use increase firms' investment? : evidence from enterprise surveys in kenya, uganda, and tanzania
publisher	World Bank, Washington, DC
publishDate	2016
url	http://documents.worldbank.org/curated/en/491931479153921241/Does-mobile-money-use-increase-firms-investment-evidence-from-enterprise-Surveys-in-Kenya-Uganda-and-Tanzania http://hdl.handle.net/10986/25692
_version_	1764459904918093824

Does Mobile Money Use Increase Firms' Investment? : Evidence from Enterprise Surveys in Kenya, Uganda, and Tanzania

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