Promoting Migrant Remittances using Mobile Money: Evidence from a Field Experiment
A collaborative effort with Carteira Móvel and the Central Bank of Mozambique
The introduction of mobile money technology in Mozambique has created a sense of opportunity and interest in the Mozambican society, with the Government and the Central Bank of Mozambique paying close attention to its potential impact. While the success of mobile money experiences in other contexts generates great expectations, there is a lack of causal evidence to provide guidance on the consequences of introducing this new technology, particularly in rural areas without access to traditional banks.
This research project focus on the potential impact of mobile money on migrant remittances to rural households in the three southern provinces of Mozambique. It takes advantage of the fact that this technology was still to be introduced in rural Mozambique at the start of the project, and that our partner institution, Carteira Móvel, agreed that we randomly select the rural areas where this technology was and was not be offered for the duration of the project.
The experimental research design allows measuring the impact of introducing mobile payment technology in rural areas on the magnitude and frequency of urban-rural transfers, while also examining substitution patterns in the use of different remittance channels and the motives potentially explaining this substitution – namely reduced transaction costs and increased trust in the remittance channel.
Please find more information on the introduction of mobile money in rural Mozambique here and in this video. Preliminary results on the impact of mobile banking can be found in the working paper, the policy brief and the data set.
In July 2015, the Central Bank of Mozambique, the International Growth Center and NOVAFRICA jointly organized a conference on the innovations and challenges faced in promoting financial development in Mozambique. The event offered international researchers and local policy-makers theopportunity to discuss current initiatives and research projects that evaluate the impact of mobile money in rural areas and micro-enterprise development in the greater Maputo area.
Please find more information on the speakers and program of the conference here.
This content was originally published in Novafrica.org.
Nova SBE NOVAFRICA Knowledge Center
Nova SBE NOVAFRICA Knowledge Center operates since 2011. It is producing applied research on sub-Saharan Africa, where it has collaborated with a number of public authorities, private companies, and local organizations.Website
Technical Assistance in Behavioral Economics to Combat and Prevent Corruption in International Trade
In a recent project conducted in Guinea-Bissau the NOVAFRICA investigators provided technical assistance in behavioral economics to combat and prevent corruption in international trade.Learn more
Four Months in Bula: Why Would I Do It Again
Read the testimonial of the amazing experience of Rita Moreira, who participated in a Nova SBE NOVAFRICA Knowledge Center's summer internship in Guinea-Bissau.Learn more
Social Signaling and Childhood Immunization: A Field Experiment in Sierra Leone
RESEARCH SEMINAR | Under the the theme Economic Development in Africa, the NOVAFRICA Knowledge Center welcomes Anne Karing from Princeton University to present her work on Social Signaling and Childhood Immunization in Sierra Leone.Learn more