The Impact of Digital Finance on Household Welfare Outcomes: Lessons from Zambia
Derick Ndimbwa
, Collins Odoyo PhD
household welfare, digital finance, impact, binary logistic model
Despite the steady rise in the adoption of digital finance in Africa and its impact on economic well-being in society, there is limited research on what drives its adoption and uptake, especially with regard to emerging economies in Africa. On this premise, based on FinScope’s 2020 cross-sectional dataset, documentation, and key informant interviews, this paper seeks to empirically investigate the impact of digital finance on the economic well-being of poor households who have limited access to traditional financial services in Zambia. The study uses binary logistic econometric analysis to investigate the impact of digital finance on household welfare indicators in Zambia. The results reveal that household size, age, annual income, gender, national identity card, access to savings, ownership of a phone, holding a bank account, region of residence, amount sent using digital finance, amount received using digital finance, and household welfare significantly impacted the use of digital finance. The study used estimated regression coefficients, standard errors of the coefficients, and the statistical significance of each covariate. The study reveals an exponential transformation of the regression coefficients (odds ratio) and some diagnostic tests on the fit of the regression model. The fit of the final model over the null model was examined using the likelihood-ratio test. The study recommends policy formulation in the areas of gender-sensitive interventions, financial inclusion and literacy, and telecommunications infrastructure, supporting innovative gender-sensitive regulatory technologies, investment in social protection, and poverty alleviation programmes
"The Impact of Digital Finance on Household Welfare Outcomes: Lessons from Zambia", IJSDR - International Journal of Scientific Development and Research (www.IJSDR.org), ISSN:2455-2631, Vol.7, Issue 11, page no.399 - 409, November-2022, Available :https://ijsdr.org/papers/IJSDR2211064.pdf
Volume 7
Issue 11,
November-2022
Pages : 399 - 409
Paper Reg. ID: IJSDR_202535
Published Paper Id: IJSDR2211064
Downloads: 000347279
Research Area: Management
Country: Lusaka, Lusaka, Zambia
ISSN: 2455-2631 | IMPACT FACTOR: 9.15 Calculated By Google Scholar | ESTD YEAR: 2016
An International Scholarly Open Access Journal, Peer-Reviewed, Refereed Journal Impact Factor 9.15 Calculate by Google Scholar and Semantic Scholar | AI-Powered Research Tool, Multidisciplinary, Monthly, Multilanguage Journal Indexing in All Major Database & Metadata, Citation Generator
Publisher: IJSDR(IJ Publication) Janvi Wave
