Digitization Effects in Equilibrium
While the economic effects of digitization in low- and middle-income countries have been studied extensively, the general equilibrium effects of digitizing business payments along the supply chain and on neighboring businesses have been less explored. In this proposal, we pilot three treatments in rural Ghana that encourage digitization of payments between small and microentrepreneurs (SMEs) and their input suppliers. Data collected will allow us to assess the business network of SMEs and to measure the equilibrium effects of digitization. We focus on local garment and textile businesses in the districts of Kwabre East and Juaben, home to two of the most prominent traditional cloths (Kente and Adinkra). This pilot will develop strong partnerships with providers in the field, evaluate our proposed research design—measured by the take-up of our digitization programs, and assess the potential for a full RCT.