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Financial inclusion, shocks and coping strategies: survey evidence from Uganda

Financial inclusion, shocks and coping strategies: survey evidence from Uganda The purpose of this paper is to investigate the roles that access formal and informal finance as well as mobile money play in facilitating the choice of coping strategies that households adopt.Design/methodology/approachThe research methodology considers the estimation of binary outcome maximum likelihood probit models for each coping strategy on a vector of covariates that include measures of financial inclusion, household characteristics and community variables.FindingsThe author finds that financial inclusion is associated with a higher likelihood of adopting market-oriented strategies such as selling assets or borrowing and lower likelihood for non-market strategies such as reliance on informal networks and reducing consumption.Originality/valueTo the best of the author’s knowledge, this paper provides the first empirical attempt examining the pathways through which financial inclusion may facilitate the choice of coping strategies using nuanced household data. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png African Journal of Economic and Management Studies Emerald Publishing

Financial inclusion, shocks and coping strategies: survey evidence from Uganda

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Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
2040-0705
DOI
10.1108/ajems-10-2018-0325
Publisher site
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Abstract

The purpose of this paper is to investigate the roles that access formal and informal finance as well as mobile money play in facilitating the choice of coping strategies that households adopt.Design/methodology/approachThe research methodology considers the estimation of binary outcome maximum likelihood probit models for each coping strategy on a vector of covariates that include measures of financial inclusion, household characteristics and community variables.FindingsThe author finds that financial inclusion is associated with a higher likelihood of adopting market-oriented strategies such as selling assets or borrowing and lower likelihood for non-market strategies such as reliance on informal networks and reducing consumption.Originality/valueTo the best of the author’s knowledge, this paper provides the first empirical attempt examining the pathways through which financial inclusion may facilitate the choice of coping strategies using nuanced household data.

Journal

African Journal of Economic and Management Studies – Emerald Publishing

Published: Aug 19, 2019

Keywords: Financial inclusion; Shocks; Coping strategies; Uganda

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