ABSTRACT
Mobile money has become a lifeline for millions of poor people who have limited access to a formal banking system. It encompasses a wide range of benefits such as women's empowerment, risk sharing, improved labor market outcomes and reductions in poverty. In this paper, we ask whether mobile money can help lift people out of poverty. Previous studies have addressed this question by using microanalyses of field experiments or longitudinal data on rural households, whereas we use district-level data to reevaluate the mobile money-poverty nexus. In particular, we study the impact of mobile money on district-level poverty in Bangladesh over the period 2010-2016. Our study finds that every 1 billion Taka (approximately US$ 11.76 million) increase in mobile money transactions via the bKash system in 2015 is associated with 0.71% point reduction in the poverty rate in Bangladesh. The marginal impact ranges from 0.12 to 1.15% points across the districts categorized in five groups as per 2010 poverty rates. The findings suggest that mobile money has been successful in fostering various poverty reduction initiatives and that targeted policy prescriptions can be devised to lift up poorer societies that are still outside the purview of mobile financial services. To further increase mobile money use, the government could use its own infrastructure to enhance mobile agent density in the poorest sectors of society.
ABSTRACT
Using cumulative confirmed cases of Covid-19 covering 163 countries, this paper tests several hypotheses that have received extensive attention in the popular media and academic research during the ongoing coronavirus pandemic. Our goal is to identify lessons for designing better public health policies in the post-pandemic era based on the past 6 months' experiences of these 163 countries. Based on 2SLS regression, we derive the following lessons. First, providing universal health care is a significant public health strategy for countries to help deal with similar outbreaks in the future. Second, tackling air pollution is a win-win solution, not only for better preparedness against Covid-19 or other airborne diseases, but also for the environment and climate change. Third, lockdowns may help to reduce community spread, but its impact on reducing Covid-19 incidence is not statistically significant. Similarly, antimalarial drugs have no significant effect on reducing the spread of the disease. Fourth, countries should encourage home-based work as much as possible until some treatment or cure is found for the virus. Fifth, the lessons of past SARS experience helped contain the spread of the infection in East Asian countries; other countries must adjust their social and cultural life to the new normal: wearing masks, washing hands, and keeping a distance from others in public places.
