Money transfer and monetary well-being of beneficiaries: what is the role of mobile money in the fight against poverty in Côte d’Ivoire?

This article evaluates the causal impact of mobile money transfers on monetary poverty in Côte d’Ivoire and determines the optimal transfer amount for effective poverty reduction, addressing a critical gap in the literature on financial inclusion and poverty alleviation in West Africa. We employ a recursive bivariate copula model using original survey data collected from 1,536 mobile money users between October 2020 and May 2021, which enables robust correction for selection bias and endogenous relationships while estimating causal effects. Our findings reveal that an optimal transfer amount of 20,000 FCFA per month (60,000 FCFA per quarter) produces a statistically significant reduction in poverty levels. Furthermore, mobile money usage substantially increases the probability of escaping monetary poverty among transfer recipients by facilitating more efficient and accessible financial transactions. This study recommends integrating mobile money platforms into national social protection strategies and suggests that policymakers target social transfers around 20,000 FCFA per month to maximize poverty reduction impacts. Additionally, financial inclusion policies should prioritize mobile money infrastructure development to enhance the effectiveness of cash transfer programs.