Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/295649 
Year of Publication: 
2021
Series/Report no.: 
CReAM Discussion Paper Series No. 16/21
Publisher: 
Centre for Research & Analysis of Migration (CReAM), Department of Economics, University College London, London
Abstract: 
Rural areas in sub-Saharan Africa are typically underserved by financial services. We measure the economic impact of introducing mobile money for the first time in rural villages of Mozambique using a randomized control trial. This intervention led to consumption smoothing through increased transfers as a response to both geo-referenced village-level floods and household-level idiosyncratic shocks. Importantly, we find that the availability of mobile money increased migration out of rural areas, where we observe lower agricultural activity and investment. Our work illustrates how financial inclusion can accelerate African urbanization and structural change while improving welfare in rural areas.
Subjects: 
mobile money
migration
remittances
technology adoption
insurance
consumption smoothing
investment
savings
Mozambique
Africa
JEL: 
O12
O15
O16
O33
G20
R23
Document Type: 
Working Paper

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