Mobile money and macroeconomic outcomes in East Africa
Date
2021
Authors
Kimere, Christine Muthoni
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Journal ISSN
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Publisher
Strathmore University
Abstract
This study examined the outcomes of mobile money use on money supply, inflation and national
output. Data was taken from East African countries that have adopted mobile money services,
namely Kenya, Tanzania, Uganda and Rwanda. A Panel Vector Autoregression was fitted to the
data, and subsequently a Forecast Error Variance Decomposition and Orthogonalized Impulse
Response Function were generated to examine the dynamics between the variables. The findings
indicate that mobile money transactions have modest negative effects on inflation and money
supply in the medium-term. Indicating that mobile money substitutes for the transactional function
of money to some extent, and enhances output and efficiency of production.
Description
Submitted in partial fulfillment of the requirements for the Bachelor of Business
Science in Financial Economics, at Strathmore University