Mobile Phone Innovation and Inclusive Human Development: Evidence from Sub-Saharan Africa

Abstract

A recent World Bank report reveals that poverty has been decreasing in all regions of the world with the exception of sub-Saharan Africa (SSA) as more than 45% of countries in the sub-region are off-track from achieving the Millennium Development Goal (MDG) extreme poverty target. This paper investigates the effects of mobile phone technology, knowledge creation and diffusion on inclusive human development in 49 SSA countries for the period 2000-2012 using Tobit model. The study finds that mobile phone penetration in SSA is pivotal to sustainable and inclusive human development irrespective of the country’s level of income, legal origins, religious orientation and the state of the nation. However, the pupil-teacher ratio exerts a negative influence on inclusive human development. The net effects of interactions between the mobile phone and knowledge diffusion variables are positive.

Keywords: mobile phones; inclusive human development; Africa

JEL Classification: G20; I10; I32; O40; O55