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The Impact of Mobile Phone Coverage Expansion on Market Participation: Panel Data Evidence from Uganda

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  • Muto, Megumi
  • Yamano, Takashi

Abstract

Summary An increased information flow due to mobile phone network expansions is expected to reduce marketing costs of agricultural commodities. We investigate this using panel data of 856 Ugandan households in 94 communities, where the number of communities covered by mobile phone networks increased from 41 to 87 between surveys in 2003 and 2005, respectively. After the expansion of coverage, we find increased sales of banana in remote communities but not of maize. The mobile phone coverage expansion seems to induce the market participation of farmers in remote areas who produce perishable crops.

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Bibliographic Info

Article provided by Elsevier in its journal World Development.

Volume (Year): 37 (2009)
Issue (Month): 12 (December)
Pages: 1887-1896

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Handle: RePEc:eee:wdevel:v:37:y:2009:i:12:p:1887-1896

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Web page: http://www.elsevier.com/locate/worlddev

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Keywords: information technology marketing panel data Uganda Africa;

References

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  1. Bayes, Abdul, 2001. "Infrastructure and rural development: insights from a Grameen Bank village phone initiative in Bangladesh," Agricultural Economics, Blackwell, vol. 25(2-3), pages 261-272, September.
  2. Robert Jensen, 2007. "The Digital Provide: Information (Technology), Market Performance, and Welfare in the South Indian Fisheries Sector," The Quarterly Journal of Economics, MIT Press, vol. 122(3), pages 879-924, 08.
  3. Jonathan Donner, 2004. "Microentrepreneurs and Mobiles: An Exploration of the Uses of Mobile Phones by Small Business Owners in Rwanda," Information Technologies and International Development, MIT Press, vol. 2(1), pages 1-21.
  4. 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.
  5. Pender, John L. & Nkonya, Ephraim M. & Jagger, Pamela & Sserunkuuma, Dick & Ssali, Henry, 2003. "Strategies To Increase Agricultural Productivity And Reduce Land Degradation: Evidence From Uganda," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25816, International Association of Agricultural Economists.
  6. Smale, Melinda & Tushemereirwe, Wilbeforce K., 2007. "An economic assessment of banana genetic improvement and innovation in the Lake Victoria Region of Uganda and Tanzania:," Research reports 155, International Food Policy Research Institute (IFPRI).
  7. Overa, Ragnhild, 2006. "Networks, distance, and trust: Telecommunications Development and changing trading practices in Ghana," World Development, Elsevier, vol. 34(7), pages 1301-1315, July.
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