[E] Does Subsidizing Cross-Border Trade Boost Microenterprise Growth? A field experiment in Kenya
Le 9 oct. 2025 de 13h00 à 14h00
à Pau, en salle des thèses DEG ; à Bayonne, en salle 110, via Teams
Abstract
We investigate the impact of an incentive-to-trade scheme on micro-enterprise performance among traders at the Kenya-Uganda border. Through a randomized controlled trial (RCT), we assess the effects of a scalable monetary incentive combined with an information treatment to curb misperception of trading risks. The treatment significantly increases trade volume and leads to sizable growth in revenue and profit, detected six months after the end of the intervention. We explore the underlying mechanisms driving these results, particularly the role of profit reinvestment and changes in traders’ perceptions of risk. This study contributes critical insights into the potential of targeted interventions to enhance cross-border trade and improve the economic outcomes of micro-entrepreneurs in developing regions.
