Financial inclusion, shocks and coping strategies: survey evidence from Uganda
African Journal of Economic and Management Studies
ISSN: 2040-0705
Article publication date: 1 May 2019
Issue publication date: 19 August 2019
Abstract
Purpose
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/approach
The 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.
Findings
The 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/value
To 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.
Keywords
Citation
Mawejje, J. (2019), "Financial inclusion, shocks and coping strategies: survey evidence from Uganda", African Journal of Economic and Management Studies, Vol. 10 No. 3, pp. 286-298. https://doi.org/10.1108/AJEMS-10-2018-0325
Publisher
:Emerald Publishing Limited
Copyright © 2019, Emerald Publishing Limited