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Allocating Cash Savings and the Role of Information: Evidence from a Field Experiment in Uganda

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  • Buehren, Niklas

Abstract

Microfinance in general and microcredit programs in particular have attracted much attention among interest groups concerned with poverty eradication and are seen by many as highly promising means in order to alleviate poverty. More recently, the spotlight has turned increasingly on the development and promotion of microsaving devices and mechanisms suitable to the unbanked poor. Along these lines, the Saving Mobilization program implemented by BRAC in Uganda is an attempt to encourage a saving culture as well as overcoming barriers to make use of saving services at more formal financial institutions. Building on a randomized control trial, the aim of this study is to investigate the impact of this program on the saving behavior of participants. The intervention is successful in increasing the usage of semi-formal financial institutions on the extensive margin as well as to boost the amount held at these institutions. The total amount of savings, however, remains unaffected. Impact heterogeneity is important and the analysis shows that illiterate individuals as well as individuals having experienced theft in the recent past are more likely to respond to the program.

Suggested Citation

  • Buehren, Niklas, 2011. "Allocating Cash Savings and the Role of Information: Evidence from a Field Experiment in Uganda," Proceedings of the German Development Economics Conference, Berlin 2011 16, Verein für Socialpolitik, Research Committee Development Economics.
    • Handle: RePEc:zbw:gdec11:16
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    Cited by:

    1. Steinert, Janina I. & Zenker, Juliane & Filipiak, Ute & Movsisyan, Ani & Cluver, Lucie D. & Shenderovich, Yulia, 2018. "Do saving promotion interventions increase household savings, consumption, and investments in Sub-Saharan Africa? A systematic review and meta-analysis," World Development, Elsevier, vol. 104(C), pages 238-256.

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    More about this item

    Keywords

    Microfinance; saving promotion; theft; literacy; Uganda;
    All these keywords.

    JEL classification:

    • D04 - Microeconomics - - General - - - Microeconomic Policy: Formulation; Implementation; Evaluation
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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