Template-type: ReDIF-Paper 1.0
Author-Name: Tetteh, Godsway Korku
Author-Email: tetteh@merit.unu.edu
Author-Workplace-Name: UNU-MERIT, Maastricht University
Author-Name: Goedhuys, Micheline
Author-Email: goedhuys@merit.unu.edu
Author-Workplace-Name: UNU-MERIT, Maastricht University
Author-Name: Konte, Maty
Author-Email: mkonte@barnard.edu
Author-Workplace-Name: UNU-MERIT, Maastricht University, and Barnard College,
	 Columbia University
Author-Name: Mohnen, Pierre
Author-Email: mohnen@merit.unu.edu
Author-Workplace-Name: UNU-MERIT, Maastricht University
Title: Mobile money adoption and entrepreneurs’ access to trade credit in the 
	 informal sector
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. 
Classification-JEL: D14, G21, L26, O16, O33
Keywords: Entrepreneurship, Financial Innovation, Mobile Money, Trade Credit 
Series: UNU-MERIT Working Papers
Creation-Date: 20211117
Number: 2021-043
File-URL: https://unu-merit.nl/publications/wppdf/2021/wp2021-043.pdf
File-Format: application/pdf
File-Size: 275 Kb
Handle: RePEc:unm:unumer:2021043