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International Recovery Platform

The Impact of Cash Transfers on Local Markets

This report explores the effects of cash transfers on local markets. It tests the hypothesis that ‘cash transfers to poor households lead to integration of markets in remote areas and strengthen existing well-integrated market systems’


The Impact of Cash Transfers on Local Markets

The Northern Uganda experience shows that, despite the initial ‘flash’ inflation, cash transfers did not have
negative effects on market integration. The increased livestock availability will make local markets more
integrated and will level price fluctuations in the future.

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