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The Effects of Mobile Phone Infrastructure: Evidence from Rural Peru

Author

Listed:
  • Beuermann, Diether

    (Inter-American Development Bank
    CENTRUM Business School)

  • McKelvey, Christopher

    (University of Wisconsin-Madison)

  • Sotelo, Carlos

    (Fondo de Inversion en Telecomunicaciones)

Abstract

We exploit the timing of cell phone coverage in rural Peru to investigate its effects on economic development. We exploit information regarding the location, date of installation and technical characteristics of cell phone towers in order to construct coverage patterns at the village level from 2001 through 2007. We then merge this information with national household surveys spanning the same period. Estimates suggest an increase of 7 percentage points in the likelihood of self reported cell phone ownership after coverage, an increase of 7.5 percent in yearly household expenditures, and a 13.5 percent increase in the value of assets.

Suggested Citation

  • Beuermann, Diether & McKelvey, Christopher & Sotelo, Carlos, 2012. "The Effects of Mobile Phone Infrastructure: Evidence from Rural Peru," Working Papers 2012-012, Banco Central de Reserva del Perú.
    • Handle: RePEc:rbp:wpaper:2012-012
    as

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    File URL: https://www.bcrp.gob.pe/docs/Publicaciones/Documentos-de-Trabajo/2012/documento-de-trabajo-12-2012.pdf
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    References listed on IDEAS

    as
    1. Aparajita Goyal, 2010. "Information, Direct Access to Farmers, and Rural Market Performance in Central India," American Economic Journal: Applied Economics, American Economic Association, vol. 2(3), pages 22-45, July.
    2. Robert Jensen, 2007. "The Digital Provide: Information (Technology), Market Performance, and Welfare in the South Indian Fisheries Sector," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 122(3), pages 879-924.
    3. Jenny Aker, 2008. "Does Digital Divide or Provide? The Impact of Cell Phones on Grain Markets in Niger," Working Papers 154, Center for Global Development.
    4. Bruce C. Greenwald & Joseph E. Stiglitz, 1986. "Externalities in Economies with Imperfect Information and Incomplete Markets," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 101(2), pages 229-264.
    5. Garbade, Kenneth D & Silber, William L, 1978. "Technology, Communication and the Performance of Financial Markets: 1840-1975," Journal of Finance, American Finance Association, vol. 33(3), pages 819-832, June.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Rahman, Md Mahabubur & Ara, Tasnim & Chakma, Rio, 2022. "Explaining geospatial variation in mobile phone ownership among rural women of Bangladesh: A multi-level and multidimensional approach," Telecommunications Policy, Elsevier, vol. 46(5).

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    More about this item

    Keywords

    Mobile coverage; economic development;

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services

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