Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/326802 
Year of Publication: 
2021
Series/Report no.: 
UNU-MERIT Working Papers No. 2021-043
Publisher: 
United Nations University (UNU), Maastricht Economic and Social Research Institute on Innovation and Technology (UNU-MERIT), Maastricht
Abstract: 
Despite the contribution of previous studies to unravel the implications of mobile money in the developing world, the effect of this innovation on an important source of external finance, trade credit, has not been properly accounted for particularly in the informal sector. Using the 2016 FinAccess Household Survey, we investigate the relationship between mobile money adoption and the probability to receive goods and services on credit from suppliers based on a sample of entrepreneurs who operate informal businesses. We further explore the effect of mobile money adoption on the likelihood to offer goods and services on credit to customers. Our estimations suggest that entrepreneurs with mobile money are more likely to receive goods and sesrvices on credit from suppliers. We also find a positive and significant relationship between mobile money adoption and the likelihood to offer goods and services on credit to customers. The evidence supports the promotion of mobile money adoption among entrepreneurs in the informal sector to facilitate access to credit.
Subjects: 
Entrepreneurship
Financial Innovation
Mobile Money
Trade Credit
JEL: 
D14
G21
L26
O16
O33
Creative Commons License: 
cc-by-nc-sa Logo
Document Type: 
Working Paper

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