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Social network effects on mobile money adoption in Uganda

Author

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  • Murendo, Conrad
  • Wollni, Meike
  • de Brauw, Alan
  • Mugabi, Nicholas

Abstract

Social networks play a vital role in generating social learning and information exchange that can drive the diffusion of new financial innovations. This is particularly relevant for developing countries where education, extension and financial information services are underprovided. This article identifies the effect of social networks on the adoption of mobile money by households in Uganda. Using data from a household survey, conditional logistic regression is estimated controlling for correlated effects and other information sources. Results show that mobile money adoption is positively influenced by the size of social network members exchanging information, and the effect is more pronounced for non-poor households. The structure of social network however has no effect. The findings show that information exchange through social networks is crucial for adoption of mobile money. Mobile money adoption is likely to be enhanced if promotion programs reach more social networks.

Suggested Citation

  • Murendo, Conrad & Wollni, Meike & de Brauw, Alan & Mugabi, Nicholas, 2015. "Social network effects on mobile money adoption in Uganda," 2015 Conference, August 9-14, 2015, Milan, Italy 212514, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae15:212514
    DOI: 10.22004/ag.econ.212514
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    More about this item

    Keywords

    Consumer/Household Economics; Research and Development/Tech Change/Emerging Technologies;

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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