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Mobile money and healthcare use: Evidence from East Africa

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  • Ahmed, Haseeb
  • Cowan, Benjamin

Abstract

This paper uses a difference-in-difference framework to estimate the effects of mobile money transfer technology (MMT) on healthcare use in the face of negative health shocks. We use survey data from 2013 to 16 with quarterly observations on about 1800 households of 10 villages in the Kisumu region of Western Kenya. We find evidence that MMT, likely through greater ease of informal borrowing, helps households increase utilization of formal healthcare services in terms of visits to a clinic, consultation and medication expenditures in comparison with non-users of this technology. MMT appears to be complementary with other risk-sharing mechanisms such as farm sales and in-kind transfers.

Suggested Citation

  • Ahmed, Haseeb & Cowan, Benjamin, 2021. "Mobile money and healthcare use: Evidence from East Africa," World Development, Elsevier, vol. 141(C).
    • Handle: RePEc:eee:wdevel:v:141:y:2021:i:c:s0305750x21000048
    DOI: 10.1016/j.worlddev.2021.105392
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    5. Ablam Estel Apeti & Jean-Louis Combes & Eyah Denise Edoh, 2023. "Entrepreneurship in developing countries: can mobile money play a role?," Working Papers hal-04081304, HAL.
    6. Carlos Sakyi‐Nyarko & Ahmad Hassan Ahmad & Christopher J. Green, 2022. "Investigating the well‐being implications of mobile money access and usage from a multidimensional perspective," Review of Development Economics, Wiley Blackwell, vol. 26(2), pages 985-1009, May.
    7. Ablam Estel Apeti, 2022. "Household welfare in the digital age: Assessing the effect of mobile money on household consumption volatility in developing countries," Post-Print hal-03819779, HAL.

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