The Puzzle of Mobile Money Markets: An Example of Goldilocks Conditions
By Ricardo Martínez-Cid and Gonzalo Pernas
This paper investigates the supply-side and demand-side factors that explain the success of mobile money markets. Namely, we argue that there exists a set of Goldilocks conditions that best supports mobile money services. A population must have exposure to financial services to understand mobile money and have a high enough level of income to have a use for these services. However, the population must also not have access to highly developed banking architecture, such that their banking needs are already satisfied. By comparing El Salvador and Kenya, countries in different stages of development, we find empirical support for our hypothesis. Our evidence suggests that low income regions and households with some exposure to financial services are more likely to use mobile money than fully banked people who enjoy a higher income.
Advisor: Michelle Connolly, Erica Field | JEL Codes: E40, E42, G21, G23, O12, O16, O17
Effect of Slum Redevelopment on Child Health Outcomes: Evidence from Mumbai
By Suhani Jalota
As the population of urban poor living in slums increases, governments are trying to relocate people into government–provided free housing. Slum redevelopment affects every part of a household’s livelihood, but most importantly the health and wellbeing of younger generations. This paper investigates the effect of slum redevelopment schemes on child stunting levels. Data was collected in forty–one buildings under the slum–redevelopment program in Mumbai. The study demonstrates through a fixed effect regression analysis that an additional year of living in the building is associated with an increase in the height–for–age Z–score by 0.124 standard deviations. Possible explanations include an improvement in the overall hygienic environment, sanitation conditions, indoor air pollution, and access to health and water facilities. However, anecdotal evidence suggests that water contamination, loss of livelihood and increased expenses could worsen health outcomes for residents. This study prompts more research on the health effects of slum redevelopment projects, which are becoming increasingly common in the rapidly urbanizing developing world.
Advisor: Erica Field, Michelle Connolly | JEL Codes: O12, O14, O17, O18, O22 | Tagged: Urban infrastructure, Microeconomic Analyses of Economic Development, Child health, Informal settlements, Project Analysis
The Effect of Social, Cultural, and Political Values on Entrepreneurial Perceptions and Venture Creation: A Global Investigation
By Repton Salisbury
The effect of entrepreneurial activity on economic development has been researched thoroughly. New firm creation spurs economic growth by creating employment opportunities, cultivating innovation, and encouraging competition. Globally, there are countless areas that could benefit from a livelier entrepreneurial ecosystem. So how does a government or population first spur entrepreneurial activity? An entrepreneur’s perceptions are among the most powerful factors that impact the life or death of a new venture, but the determinants that influence how these perceptions first form are still largely unknown. Using survey data collected by the Global Entrepreneurship Monitor in 2010 across the United States, Japan, Switzerland, Israel, United Kingdom, Peru, Russia, Iran, and China, I conduct binary logistic regressions of individual level characteristics, social ideals, cultural norms, human development, and other environmental attributes on the most important perceptions of entrepreneurs. These perceptions have been identified by previous research as an entrepreneur’s perception of local opportunities, internal skills, and fear of failure in creating a new venture. I find that several social, cultural, and political values have a significant effect on the psychological behavior of nascent entrepreneurs.
Advisor: Alison Hagy, Grace Kim | JEL Codes: L2, L26, O17 | Tagged: Culture, Entrepreneurship, Perceptions, Venture Creation
Women’s Land Rights and Empowerment: Impact of the Land Tenure Regularization Reform (LTR) on Contraceptive Use and Domestic Violence in Rwanda
by Winnie Biwott
Abstract
The Rwandan Land Tenure Regularization reform (LTR) was implemented in 2007 to clarify land ownership in the country especially for women. Specifically, the reform enabled women in married unions to obtain joint titles with their partners as proof of land ownership. Using data from the 2010 Rwandan Demographic and Health Surveys (RDHS) and the LTR progress report, I investigate the potential effect the reform could have on women’s level of empowerment within the household. The underlying assumption for this study is that joint land titling will increase the bargaining power of the woman and consequently enhance her empowerment status. I explore three forms of empowerment, all of which tell an inconsistent story. LTR does not seem to have an overall effect on women’s use of modern contraceptives, perception and incidence of physical violence among them. However, LTR has a negative impact on incidence of sexual violence. In addition, LTR positively influences women landowners’ chances of using modern methods of contraception.
Advisors: Amar Hamoudi, Kent Kimbrough | JEL Codes: O17; O22: J120
The Rise of Mobile Money in Kenya: The Changing Landscape of M-PESA’s Impact on Financial Inclusion
By Hong Zhu
M-PESA, the hugely popular mobile money system in Kenya, has been celebrated for its potential to “bank the unbanked” and increase access to financial services. This paper provides evidence to support this idea and explores mechanisms through which this might be the case. It specifically looks at the savings products held by individuals and how this changes in relation to M-PESA use. It then constructs an index for measuring the extent to which individuals are integrated into the formal financial sector. This paper argues that M-PESA’s effect on financial inclusion is a growing phenomenon, which suggests that keeping pace with the rapid evolutions of this mobile money system should be a high priority for researchers. As this paper elucidates, M-PESA has become notably more integrated with the formal financial sector in 2013 as compared to 2009, which holds implications for user behavior.
Advisor: Michelle Connolly, Xiao Yu Wang | JEL Codes: D14, E42, G21, G23, O1, O17, O16, O33 | Tagged: Financial Inclusion, Mobile Money, Savings,Technology
