How Do Institutions Matter in the Income-Equalizing Effect of Mobile Phone Penetration?
European Economics Letters, 2(2), pp. 56-61 (2013).
13 Pages Posted: 10 Sep 2014 Last revised: 1 Apr 2015
Date Written: September 8, 2013
The object of this paper is to complement theoretical ‘mobile penetration’ literature with empirical evidence in a dual manner: on the one hand, assess the income-redistributive effect of mobile phone penetration and; on the other hand, the instrumentality of good governance in this nexus. Main findings suggest an equalizing income-redistributive effect, with a higher magnitude in the presence of government quality instruments. It follows that, good governance is a necessary condition for a higher income-equalizing effect of mobile phone penetration. The empirical evidence which deviates from mainstream country-specific and microeconomic survey-based approaches is on 52 African countries. ‘Mobile phone’-oriented poverty reduction channels are also discussed.
Keywords: Mobile Phones; Shadow Economy; Poverty; Inequality; Africa
JEL Classification: E00; G20; I30; L96; O33
Suggested Citation: Suggested Citation