Exploring the Role of Mobile Payment and Financial Inclusion on the Consumption Behaviours and Entrepreneurial Decisions: Micro-Level Evidence from Ethiopia A
| dc.contributor.advisor | Abbi M. Kedir | |
| dc.contributor.author | Meskerem Bogale | |
| dc.date.accessioned | 2026-03-05T11:41:07Z | |
| dc.date.available | 2026-03-05T11:41:07Z | |
| dc.date.issued | 2025-12-01 | |
| dc.description.abstract | This study examines the role of Financial Technology (FINTECH) and financial inclusion in shaping household economic behaviour in Ethiopia, focusing on entrepreneurship and consumption, while accounting for informal networks such as Iddir. Grounded in behavioural economic and technology adoption frameworks, it applies the Pain of Paying Theory (Zellermayer, 1996), Conditioning Theory (Feinberg, 1986; Boden et al., 2020), and Double-Entry Mental Accounting Theory (Quispe-Torreblanca et al., 2019; Raghubir& Srivastava, 2008) to explain how digital payment methods influence consumer decisions. Roger’s (2003) Diffusion of Technology Theory guides the understanding of how financial technology adoption fosters entrepreneurship and financial inclusion. Trust in digital financial services is highlighted as a critical factor influencing adoption and usage. Using nationally representative data from the 2018/2019 Ethiopian Socioeconomic Survey (ESS4), the study analyses interactions between mobile payment, financial inclusion, informal finance, trust, and household outcomes. Results show that mobile payment alone may have limited influence on entrepreneurship due to barriers such as digital literacy, accessibility, and low trust. However, integration with informal systems like Iddir substantially enhances entrepreneurial participation, as Iddir facilitates risk-sharing and builds social trust. Formal financial services like savings, insurance, and borrowing complement digital and informal mechanisms, supporting business engagement and boosting household consumption, particularly among lower- and middle-income households. The study contributes in three ways. Theoretically, it extends behavioural and technology adoption frameworks to the Ethiopian context, showing how digital, informal, and trust-based mechanisms shape household economic decisions. Empirically, it provides the first comprehensive, country-level evidence on the interplay of mobile payment, financial inclusion, informal finance, entrepreneurship, and consumption. Methodologically, it employs univariate, multivariate, and simultaneous quantile regression modelling approaches to capture complex interactions. Overall, findings emphasize integrating informal financial structures and trust-building measures into digital finance policies to promote inclusive and sustainable economic development in Ethiopia. Keywords: Financial Technology, Financial Inclusion, Household Consumption, Household Entrepreneurship, Iddir, Ethiop | |
| dc.identifier.uri | https://etd.aau.edu.et/handle/123456789/7853 | |
| dc.language.iso | en | |
| dc.publisher | AAU | |
| dc.title | Exploring the Role of Mobile Payment and Financial Inclusion on the Consumption Behaviours and Entrepreneurial Decisions: Micro-Level Evidence from Ethiopia A | |
| dc.type | Thesis |