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Macroeconomic Effects of Mobile Money in Uganda

Research Series

Macroeconomic Effects of Mobile Money in Uganda

This paper examines the effects of mobile money, a rather new innovation in Uganda’s financial sector landscape on aggregate economic activity and other macroeconomic variables. The authors first estimated the long-run effect of mobile money deposits and value of transactions on monetary aggregates using vector error correction (VEC) techniques. Then estimated the short-term effects of mobile money on selected macroeconomic variables using Structural Vector Autoregressive (SVAR) methods. The findings showed modest macroeconomic impacts: mobile money has moderate positive effects on monetary aggregates, the consumer price index, and private sector credit.

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  • Published Jun 15, 2017
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