Determinants of a Digital Divide in Sub-Saharan Africa: A Spatial Econometric Analysis of Cell Phone Coverage
AbstractSummary This paper investigates the determinants of disparities in coverage by cell telephone systems in Sub-Saharan Africa. It uses a spatially disaggregated probit for over 990,000 grid cells with adjustments for spatial autocorrelation. Determinants include potential market size (population); cost factors related to accessibility (elevation, slope, distance from a main road, and distance from the nearest large city); and competition policy. Estimates indicate significant results for the supply-demand variables, and very strong results for the competition policy index. Simulations suggest that a generalized improvement in competition policy could lead to huge improvements in cell phone area coverage, and to an overall coverage increase of nearly 100%.
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Bibliographic InfoArticle provided by Elsevier in its journal World Development.
Volume (Year): 37 (2009)
Issue (Month): 9 (September)
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Web page: http://www.elsevier.com/locate/worlddev
Sub-Saharan Africa (SSA) GSM cell phone spatial probit Markov Chain Monte Carlo (MCMC) competition policy;
Other versions of this item:
- Buys, Piet & Dasgupta, Susmita & Thomas, Tim & Wheeler, David, 2008. "Determinants of a digital divide in Sub-Saharan Africa : a spatial econometric analysis of cell phone coverage," Policy Research Working Paper Series 4516, The World Bank.
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
- L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
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