Mobile Telecommunications and the Impact on Economic Development

40 Pages Posted: 20 Jul 2011

See all articles by Harald Gruber

Harald Gruber

European Investment Bank

Pantelis Koutroumpis

Oxford Martin Programme of Technological and Economic Change; University of Oxford - Institute for New Economic Thinking at the Oxford Martin School; Imperial College Business School

Date Written: July 2011

Abstract

Using annual data from 192 countries over the period 1990–2007, we assess the impact of mobile telecommunications on economic growth. We find that this impact is smaller for countries with a low mobile penetration, usually low income countries. While in low income countries the mobile telecommunications contribution to annual GDP growth is 0.11%, for high income countries this is 0.20%. The increasing returns from mobile adoption are also emerging when assessing the impact on productivity growth. To promote mobile telecommunications penetration liberalization policies along with appropriate regulatory frameworks are recommended. Such policies should be pursued more forcefully in cases where serious shortcomings exist.

Suggested Citation

Gruber, Harald and Koutroumpis, Pantelis, Mobile Telecommunications and the Impact on Economic Development (July 2011). Economic Policy, Vol. 26, Issue 67, pp. 387-426, 2011. Available at SSRN: https://ssrn.com/abstract=1889951 or http://dx.doi.org/10.1111/j.1468-0327.2011.00266.x

Harald Gruber (Contact Author)

European Investment Bank ( email )

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Pantelis Koutroumpis

Oxford Martin Programme of Technological and Economic Change ( email )

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University of Oxford - Institute for New Economic Thinking at the Oxford Martin School ( email )

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Imperial College Business School ( email )

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United Kingdom

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