Mobile Money in Tanzania - The First Step Towards Financial Inclusion
(2022) EOSK12 20221Department of Economic History
- Abstract
- In recent years the importance of financial inclusion for economic growth has been thoroughly discussed. Particularly, the impact of mobile money in the context of developing economies has risen in prominence. This thesis adds to existing literature by exploring the how mobile money increases financial inclusion by conceptualizing it as a process with relative stages. Different theories have been put forth such as the finance-led growth hypothesis and the growth-led finance hypothesis. They are contradictory as the first believes that a well-developed financial system is the key to attaining economic development. Whereas the latter instead proposes that economic growth is the catalyst for a well-developed financial system. This thesis did... (More)
- In recent years the importance of financial inclusion for economic growth has been thoroughly discussed. Particularly, the impact of mobile money in the context of developing economies has risen in prominence. This thesis adds to existing literature by exploring the how mobile money increases financial inclusion by conceptualizing it as a process with relative stages. Different theories have been put forth such as the finance-led growth hypothesis and the growth-led finance hypothesis. They are contradictory as the first believes that a well-developed financial system is the key to attaining economic development. Whereas the latter instead proposes that economic growth is the catalyst for a well-developed financial system. This thesis did not intend to argue whether these theoretical considerations are correct, instead the intention was to identify supply- and demand constraints that remain, particularly for rural residents. Firstly, this was done quantitatively to investigate the determinants and variables that impact financial inclusion. Subsequently, complemented with a qualitative analysis done in the Arusha region in Tanzania with the aim of identifying constraints related to supply, demand, and institutions per the interviewees’ own experiences, values, and perceptions. Tanzania is interesting as they have undergone extensive financial reforms and propose that they have been able to massively increase levels of financial inclusion. Consequently, the aim of this thesis was to evaluate to what extent this was true. The results indicate that mobile money uptake has become increasingly relevant for the poor and rich alike. Equally, the conclusion is that for rural residents’ the benefits are limited to mostly using mobile money for remittances, whereas regressive fee structures and increased levies has made this process more strenuous. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9092796
- author
- Ottosson, Anton LU
- supervisor
- organization
- course
- EOSK12 20221
- year
- 2022
- type
- M2 - Bachelor Degree
- subject
- keywords
- Bank Accounts, Economic Growth, Economic Development, Financial Development, Financial Inclusion, Financial Institutions, Mobile Money, M-banking, M-money, Supply-led Growth Hypothesis, Growth-led Financy Hypothesis, Tanzania, Financial Exclusion
- language
- English
- id
- 9092796
- date added to LUP
- 2022-08-19 10:44:37
- date last changed
- 2022-08-19 10:44:37
@misc{9092796,
abstract = {{In recent years the importance of financial inclusion for economic growth has been thoroughly discussed. Particularly, the impact of mobile money in the context of developing economies has risen in prominence. This thesis adds to existing literature by exploring the how mobile money increases financial inclusion by conceptualizing it as a process with relative stages. Different theories have been put forth such as the finance-led growth hypothesis and the growth-led finance hypothesis. They are contradictory as the first believes that a well-developed financial system is the key to attaining economic development. Whereas the latter instead proposes that economic growth is the catalyst for a well-developed financial system. This thesis did not intend to argue whether these theoretical considerations are correct, instead the intention was to identify supply- and demand constraints that remain, particularly for rural residents. Firstly, this was done quantitatively to investigate the determinants and variables that impact financial inclusion. Subsequently, complemented with a qualitative analysis done in the Arusha region in Tanzania with the aim of identifying constraints related to supply, demand, and institutions per the interviewees’ own experiences, values, and perceptions. Tanzania is interesting as they have undergone extensive financial reforms and propose that they have been able to massively increase levels of financial inclusion. Consequently, the aim of this thesis was to evaluate to what extent this was true. The results indicate that mobile money uptake has become increasingly relevant for the poor and rich alike. Equally, the conclusion is that for rural residents’ the benefits are limited to mostly using mobile money for remittances, whereas regressive fee structures and increased levies has made this process more strenuous.}},
author = {{Ottosson, Anton}},
language = {{eng}},
note = {{Student Paper}},
title = {{Mobile Money in Tanzania - The First Step Towards Financial Inclusion}},
year = {{2022}},
}