Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/176425 
Year of Publication: 
2016
Citation: 
[Journal:] Financial Innovation [ISSN:] 2199-4730 [Volume:] 2 [Issue:] 13 [Publisher:] Springer [Place:] Heidelberg [Year:] 2016 [Pages:] 1-16
Publisher: 
Springer, Heidelberg
Abstract: 
Background: Mobile money services have been associated with unprecedented access to financial services, notably to under-banked and unbanked populations. Thus, mobile money opens a channel through which to examine the supply of private sector credit in Uganda. This study investigates how mobile money services influence private sector credit growth. Methods: We applied the vector error correction (VEC) model and Granger causality analysis to Ugandan data from March 2009 to February 2016, the period when mobile money services were introduced. Results: The VEC model reveals that mobile money has a significant positive long-run association with private sector credit growth. Granger causality analysis reveals long-run unidirectional causality from mobile money to private sector credit. Conclusions: Mobile money is critical for financial intermediation because it attracts resources from both the banked and the unbanked populations into the formal financial system, facilitating private sector credit growth.
Subjects: 
Mobile money
Private sector credit
Uganda
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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