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Mobile Money Payment: An Antidote to Petty Corruption?

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  • Laura Barasa

    (University of Nairobi, Kenya)

Abstract

Using a two-period panel comprising firm-level data from the 2007 and 2013 World Bank Enterprise Surveys, this paper investigates the impact of mobile money use on bribe payments in Kenya. Results based on a matched difference-in-differences estimator demonstrate that adopting mobile money for financial transactions leads to a 3.1 percentage point reduction in bribe payments. This can be explained considering that mobile money transactions leave behind a detailed trail of digital records and accounts, which may curb acts of bribery. Our findings suggest that official mobile money payments can be a practical and effective anti-corruption intervention

Suggested Citation

  • Laura Barasa, 2021. "Mobile Money Payment: An Antidote to Petty Corruption?," Working Papers 453, African Economic Research Consortium, Research Department.
    • Handle: RePEc:aer:wpaper:453
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    File URL: ftp://41.215.20.26/RePEc/aer/wpaper/Researchpaper453.pdf
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    Cited by:

    1. Abdoul-Akim Wandaogo & Fayçal Sawadogo & Jesse Lastunen, 2022. "Does the adoption of peer-to-government mobile payments improve tax revenue mobilization in developing countries?," WIDER Working Paper Series wp-2022-18, World Institute for Development Economic Research (UNU-WIDER).

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