The Impact of Mobile Phone Penetration on African Inequality
International Journal of Social Economics. 42(8), pp. 706 - 716 (July, 2015)
18 Pages Posted: 9 Sep 2014 Last revised: 7 Jul 2015
Date Written: May 8, 2013
Purpose – The aim of this paper is to complement theoretical and qualitative literature with empirical evidence on the income-redistributive effect of mobile phone penetration in 52 African countries.
Design/methodology/approach – Robust Ordinary Least Squares and Two Stage Least Squares empirical strategies are employed.
Findings – The findings suggest that mobile penetration is pro-poor, as it has a positive income equality effect.
Social implications – ‘Mobile phone’-oriented poverty reduction channels are discussed.
Originality/value – It deviates from mainstream country-specific and microeconomic survey-based approaches in the literature and provides the first macroeconomic assessment of the ‘mobile phone’-inequality nexus.
Keywords: Mobile Phones; Shadow Economy; Poverty; Inequality; Africa
JEL Classification: E00; G20; I30; L96; O33
Suggested Citation: Suggested Citation