nach oben

Small Business Economics

Erschienen in:

21.11.2017

Does mobile money use increase firms’ investment? Evidence from Enterprise Surveys in Kenya, Uganda, and Tanzania

verfasst von: Asif Islam, Silvia Muzi, Jorge Luis Rodriguez Meza

Erschienen in: Small Business Economics | Ausgabe 3/2018

Einloggen

Aktivieren Sie unsere intelligente Suche, um passende Fachinhalte oder Patente zu finden.

search-config

KI-gestützte Suche

Aus

Abstract

Private investment can be an important engine of economic growth in East African countries that are plagued with adverse economic conditions, despite recent growth rates. Against this backdrop, there has been substantial penetration of mobile money, moving beyond simple person-to-person exchanges towards 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 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. The finding is largely driven by small- and medium-sized enterprises (SMEs).

Vorheriger Artikel Human capital signals and entrepreneurs’ success in equity crowdfunding

Nächster Artikel Social support timing and persistence in nascent entrepreneurship: exploring when instrumental and emotional support is most effective

Sie haben noch keine Lizenz? Dann Informieren Sie sich jetzt über unsere Produkte:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

über 102.000 Bücher
über 537 Zeitschriften

aus folgenden Fachgebieten:

Automobil + Motoren
Bauwesen + Immobilien
Business IT + Informatik
Elektrotechnik + Elektronik
Energie + Nachhaltigkeit
Finance + Banking
Management + Führung
Marketing + Vertrieb
Maschinenbau + Werkstoffe
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Jetzt informieren

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

über 67.000 Bücher
über 340 Zeitschriften

aus folgenden Fachgebieten:

Bauwesen + Immobilien
Business IT + Informatik
Finance + Banking
Management + Führung
Marketing + Vertrieb
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Jetzt informieren

See Levine (2005) for an overview of the theoretical models and empirical literature on finance and growth and Beck (2009) for a detailed discussion of the different techniques used in empirical researches to analyze how finance affects aggregate, industry, or firm-level growth.

ES data are collected using computer-assisted personal interviewing (CAPI) software.

More information on the Enterprise Surveys global methodology as well as on the sample design and weights computation for the ES in Kenya, Tanzania, and Uganda is available on the website http://www.enterprisesurveys.org.

The three countries were chosen based on the prevalence of mobile money. The same set of questions on the use of mobile money was included in the Enterprise Survey conducted in Zambia as well. The data for Zambia, however, show a very low rate of adoption with only 25 firms out of a total sample of 720 using mobile money. Given the small sample of mobile money users, Zambia is not included in the analysis.

For more information see the following post: http://www.cgap.org/blog/mapping-financial-inclusion-fsp-maps-and-mix-finclusionlab (data downloaded April 2015).

The estimations for the amount invested were also obtained using a Tobit model, censoring the dependent variable at zero, given the high proportion of firms not investing. The main finding stands—mobile money usage is positively correlated with investment. Tobit estimation results are not reported but available from the authors upon request.

Acs, Z. J., Desai, S., & Hessels, J. (2008). Entrepreneurship, economic development and institutions. Small Business Economics, 31, 219–234.CrossRef

Aker, J.C., Boumnijel, R., McClelland, A., and Tierney, N. (2011). Zap it to me: the short-term impacts of a mobile cash transfer program. Center for Global Development Working Paper No. 268.

Aker, J.C., Boumnijel, R., McClelland, A., and Tierney, N. (2013). How do electronic transfers compare? Evidence from a mobile money cash transfer experiment in Niger. Tufts University Working Paper.

Allen, F., Carletti, E., Cull, R., Qian, J., Senbet, L., Valenzuela, P. (2016). Resolving the African financial development gap: cross-Country comparisons and a within-country study of Kenya. in African successes, volume III: modernization and development, Edwards, Johnson, and Weil. 2016.

Alphonse, P., Ducret, J., & Séverin, E. (2006). When trade credit facilitates access to bank finance: evidence from US small business data. Unpublished working paper, Université de Nancy.

Aterido, R., Hallward-Driemeier, M., & Pagés, C. (2011). Big constraints to small firms’ growth? Business environment and employment growth across firms. Economic Development and Cultural Change, 59(3), 609–647.CrossRef

Bångens, L., & Björn Söderberg, B. (2011). Mobile money transfer and usage among micro and small businesses in Tanzania SPIDER, The Swedish Program for Information and Communication Technology in Developing Regions.

Batista, C., & Vicente, P.C. (2013). Introducing mobile money in rural Mozambique: evidence from a field experiment NOVAFRICA Working Paper Series No. 1301.

Beck, T. (2009). The econometrics of finance and growth. In Palgrave Handbook of Econometrics, vol. 2, ed. Terence Mills and Kerry Patterson, 1180–1211.

Beck, T., Pumak H., Ramrattan, R., & Uras, B.R. (2015). Mobile money, trade credit and economic development: theory and evidence, CentER Discussion Paper 2015–023.

Bencivenga, V. R., Smith, B. D., & Starr, R. M. (1995). Transactions costs, technological choice, and endogenous growth. Journal of Economic Theory, 67(1), 153–177.CrossRef

Bi, R., Davison, R. M., & Smyrnios, K. X. (2017). E-business and fast growth SMEs. Small Business Economics, 48, 559–576.CrossRef

Blumenstock, J. E., Callen, M., Ghani, T., & Koepke, L. (2015). Promises and pitfalls of mobile money in Afghanistan: Evidence from a randomized control trial. In Proceedings of the Seventh International Conference on Information and Communication Technologies and Development (p. 15). ACM. Blumenstock, J., & Eagle, N.

Burkart, M., & Ellingsen, T. (2004). In-kind finance: a theory of trade credit. The American Economic Review, 94(3), 569–590.CrossRef

Cull, R., & Xu, L. C. (2005). Institutions, ownership, and finance: the determinants of profit reinvestment among Chinese firms. Journal of Financial Economics, 77(2005), 117–146.CrossRef

De Long, J. B., & Summers, L. H. (1993). How strongly do developing economies benefit from equipment investment? Journal of Monetary Economics, 32(3), 395–415.

Demirguc-Kunt, A., & Maksimovic, V. (1998). Law, finance, and firm growth. The Journal of Finance, 53(6), 2107–2137.CrossRef

Domar, E. D. (1946). Capital expansion, rate of growth, and employment. Econometrica, 14, 137–147.CrossRef

Frederick, L.I. (2014). Impact of mobile money usage on microenterprise evidence from Zambia in urban opportunities: perspectives on climate change, resilience, inclusion and the informal economy, Wilson Center https://www.wilsoncenter.org/sites/default/files/USL_140508_Urban%20Opportunities_rpt_0127.pdf#page=162.

Goedhuys, M., & Sleuwaegen, L. (2010). High-growth entrepreneurial firms in Africa: a quantile regression approach. Small Business Economics, 34, 31–51.CrossRef

Gosavi, A. (2015). The next frontier of mobile money usage-firms-evidence from Sub-Saharan Africa, 19th Annual Western Hemispheric Trade Conference proceedings April 15–17, 2015 http://freetrade.tamiu.edu/PDF/19Conf-Sessions.pdf#page=149.

Greenwald, B., Stiglitz, J. E., & Weiss, A. (1984). Information imperfections and macroeconomic fluctuations. American Economic Review, 74(2), 194–199.

GSMA. (2015). Mobile Money. State of the Industry Report, 2015.

Harrod, R. F. (1939). An essay in dynamic theory. Economic Journal, 49(193), 14–33.CrossRef

Heyer, A., & Mas, I. (2011). Fertile grounds for mobile money: towards a framework for analysing enabling environments. Enterprise Development and Microfinance, 22(1), 30–44.CrossRef

Higgins, D., Kendall, J., & Lyon, B. (2012). Mobile money usage patterns of Kenyan small and medium enterprises. Innovations: Technology, Governance, Globalization, 7(2), 67–81.CrossRef

International Finance Corporation (IFC) (2014). In the fast lane: innovations in digital finance.

Jack, W., & Suri, T. (2011). Mobile money: the economics of M-Pesa, NBER Working paper no. 16721.

Jack, W., & Suri, T. (2014). Risk sharing and transaction costs: evidence from Kenya’s mobile money revolution. The American Economic Review, 104(1), 183–223.CrossRef

Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305–360.CrossRef

Kadapakkam, P.-R., Kumar, P. C., & Riddick, L. A. (1998). The impact of cash flows and firm size on investment: the international evidence. Journal Banking and Finance, 22(3), 293–320.CrossRef

Krasniqi, B. A., & Desai, S. (2016). Institutional drivers of high-growth firms: country-level evidence from 26 transition economies. Small Business Economics, 47(4), 1075–1094.CrossRef

Kuntchev, V., R. Ramalho, J.R. Meza, & J.S. Yang (2013). What have we learned from the enterprise surveys regarding access to credit by SMEs? World Bank Policy Research Working Paper No. 6670.

Levine, R. (2005). Finance and growth: theory and evidence. In P. Aghion & S. Durlauf (Eds.), Handbook of economic growth. Amsterdam: Elsevier Science.

Levine, R., Loayza, N., & Beck, T. (2000). Financial intermediation and growth: causality and causes. Journal of Monetary Economic, 46(2000), 31–77.CrossRef

Liu, Q., & Lu, Y. (2015). Firm investment and exporting: evidence from China’s value-added tax reform. Journal of International Economics, 97(2), 392–403.CrossRef

McMillan, J., & Woodruff, C. (2002). The central role of entrepreneurs in transition economies. Journal of Economic Perspectives, 16(3), 153–170.CrossRef

Modigliani, F., & Miller, M. H. (1958). The cost of capital, corporation finance and the theory of investment. The American Economic Review, 48(3), 261–297.

Morawczynski, O., & Pickens, M. (2009). Poor people using mobile financial services: observations on customer usage and impact from M-PESA. Washington: World Bank.

Munyegera, G. K., & Matsumoto, T. (2016). Mobile money, remittances, and household welfare: panel evidence from rural Uganda. World Development, 79, 127–137 2016.CrossRef

Ndung’u, N., Morales, A., & Ndirangu, L. (2016). Cashing in on the digital revolution IMF Finance & Development, Vol. 53, No. 2.

Ouedraogo, I. M., & Kouaman, P. T. (2014). Governance and private investment in sub-Saharan Africa. International Journal of African Development, 2(1), 5–25.

Pellegrina, L. D., Frazzoni, S., & Rotondi, Z. (2017). Does ICT adoption improve access to credit for small enterprises? Small Business Economics, 48, 657–679.CrossRef

Porter, M. E., Sachs, J. D., & McArthur, J. W. (2002). Executive summary: competitiveness and stages of economic development. In M. Porter, J. Sachs, P. K. Cornelius, J. W. McArthur, & K. Schwab (Eds.), The global competitiveness report 2001–2002 (pp. 16–25). New York: Oxford University Press.

Rajan, R. G., & Zingales, L. (1998). Financial dependent and growth. The American Economic Review, 88(3), 559–586.

Samuel, J., Shah, N., & Hadingham, W. 2005. Mobile communications in South Africa, Tanzania and Egypt: results from community and business surveys in Africa: the economic impact of mobile phones. Vodafone Policy Paper Series, Number 3.

Seker, M. (2012). Importing, exporting, and innovation in developing countries. Review of International Economics, 20(2), 299–314.CrossRef

Stiglitz, J. E., & Weiss, A. (1981). Credit rationing in markets with imperfect information. American Economic Review, 71(3), 393–410.

Suri, T., & Jack, W. (2016). The long-run poverty and gender impacts of mobile money. Science, 354(6317), 1288–1292.CrossRef

Syverson, C. (2011). What determines productivity? Journal of Economic Literature, 49(2), 326–365.CrossRef

Wright, R., Tekin, E., Topalli, V., McClellan, C., Dickonson, T., & Rosenfeld, R. (2014). Less cash, less crime: evidence from the electronic benefit transfer program, NBER Working paper no. 19996.

Titel: Does mobile money use increase firms’ investment? Evidence from Enterprise Surveys in Kenya, Uganda, and Tanzania
verfasst von: Asif Islam
Silvia Muzi
Jorge Luis Rodriguez Meza
Publikationsdatum: 21.11.2017
Verlag: Springer US
Erschienen in: Small Business Economics / Ausgabe 3/2018
Print ISSN: 0921-898X
Elektronische ISSN: 1573-0913
DOI: https://doi.org/10.1007/s11187-017-9951-x

Springer Professional

Abstract

Bitte loggen Sie sich ein, um Zugang zu Ihrer Lizenz zu erhalten.

Sie haben noch keine Lizenz? Dann Informieren Sie sich jetzt über unsere Produkte:

Springer Professional "Wirtschaft+Technik"

Springer Professional "Wirtschaft"

Weitere Artikel der Ausgabe 3/2018

Technical efficiency in the Italian performing arts companies

Human capital signals and entrepreneurs’ success in equity crowdfunding

Social networks and the geography of entrepreneurship

The socially and spatially bounded relationships of entrepreneurial activity: Olav Sorenson—recipient of the 2018 Global Award for Entrepreneurship Research

Defaults in bank loans to SMEs during the financial crisis

Networks and self-employed migrants

Premium Partner