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

See all articles by Simplice Asongu

Simplice Asongu

African Governance and Development Institute

Date Written: September 8, 2013

Abstract

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

Asongu, Simplice, How Do Institutions Matter in the Income-Equalizing Effect of Mobile Phone Penetration? (September 8, 2013). European Economics Letters, 2(2), pp. 56-61 (2013). . Available at SSRN: https://ssrn.com/abstract=2493381 or http://dx.doi.org/10.2139/ssrn.2493381

Simplice Asongu (Contact Author)

African Governance and Development Institute ( email )

P.O. Box 8413
Yaoundé, 8413
Cameroon

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