Motivation
Bangladesh is a rapidly developing economy facing complex gender dynamics. The Global Gender Gap Index, a broad measure of gender parity, ranks Bangladesh 50th out of 153 countries overall1. However, women in Bangladesh fall far behind men in terms of economic participation and opportunity. Increasing the financial market participation of Bangladeshi women holds the potential to reduce these inequities. However, transaction costs are a major barrier to financial access, both in Bangladesh and worldwide. While digital financial services (DFS) can reduce these costs relative to traditional financial services, evidence suggests that women may value these cost reductions differently than men. Identifying the role of transaction costs in women’s demand for DFS can potentially close gender gaps across a wide variety of economic indicators, and ultimately advance women’s economic empowerment (WEE).
Objective
This project investigates the mediating role of transaction costs on the relationship between DFS and WEE. The study will explore the role of direct transaction costs, such as fees to use DFS, and indirect transaction costs, including time spent setting up a DFS account and traveling to a DFS agent. The research team will examine whether women perceive the benefits of reduced direct versus indirect transaction costs differently by designing an experiment that separates the two. The team will also attempt to quantify the extent to which these estimates differ between men and women to assess whether reduced transaction costs can facilitate WEE.
