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The Economic Impact of Telecommunications in Senegal

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Author Info

  • Raul KATZ

    (Columbia Institute for Tele-Information; Columbia Business School)

  • Pantelis KOUTROUMPIS

    (Imperial College Business School; Columbia Institute for Tele-Information)

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    Abstract

    While the economic impact of telecommunications has attracted the focus of attention of research in the past, the area of sub-Saharan Africa has only recently become the subject of inquiry. Furthermore, the study of the region represents a case study by itself. Socio-economic parameters like economic stability and growth, compulsory education, access to basic services, rule of law and control of corruption shape an unpredictable environment and certainly affect the impact that wireless and broadband may have. Additionally, embryonic fixed line networks, limited banking facilities and patchy transport links may have an accentuated impact on the development and use of digital networks. In this paper a unique country-level sample was assembled for Senegal for the period 2004-2011 in order to measure the effect of wireless and broadband on the economic growth of the country. Our preliminary results suggest that mobile phones have a measurable impact on economic growth and lie within the estimates of previous work on a much larger scale. On the other hand, the economic effect of broadband cannot be measured yet because the technology is at its very early stages of adoption. However, the rapid growth of third generation services during 2011 suggests a transformation in this type of network access, which might result in important economic effects in the future.

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    Bibliographic Info

    Article provided by IDATE, Com&Strat dept. in its journal Communications & Strategies.

    Volume (Year): 1 (2012)
    Issue (Month): 86 (2nd quarter)
    Pages: 21-42

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    Handle: RePEc:idt:journl:cs8601

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    Keywords: broadband; economy; Senegal; ICT;

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    References

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    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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    1. Lars-Hendrik Roller & Leonard Waverman, 2001. "Telecommunications Infrastructure and Economic Development: A Simultaneous Approach," American Economic Review, American Economic Association, American Economic Association, vol. 91(4), pages 909-923, September.
    2. Czernich, Nina & Falck, Oliver & Kretschmer, Tobias & Wößmann, Ludger, 2011. "Broadband Infrastructure and Economic Growth," Munich Reprints in Economics, University of Munich, Department of Economics 20033, University of Munich, Department of Economics.
    3. Kangni Kpodar & Mihasonirina Andrianaivo, 2011. "ICT, Financial Inclusion, and Growth Evidence from African Countries," IMF Working Papers 11/73, International Monetary Fund.
    4. Norton, Seth W, 1992. "Transaction Costs, Telecommunications, and the Microeconomics of Macroeconomic Growth," Economic Development and Cultural Change, University of Chicago Press, vol. 41(1), pages 175-96, October.
    5. 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, MIT Press, vol. 122(3), pages 879-924, 08.
    6. Madden, Gary G & Savage, Scott J, 1997. "CEE telecommunications investment and economic growth," MPRA Paper 11843, University Library of Munich, Germany, revised 25 Jul 1997.
    7. Harald Gruber & Pantelis Koutroumpis, 2011. "Mobile telecommunications and the impact on economic development," Economic Policy, CEPR;CES;MSH, CEPR;CES;MSH, vol. 26(67), pages 387-426, 07.
    8. Klonner, Stefan & Nolen, Patrick J., 2010. "Cell Phones and Rural Labor Markets: Evidence from South Africa," Proceedings of the German Development Economics Conference, Hannover 2010 56, Verein für Socialpolitik, Research Committee Development Economics.
    9. Dimitrios Batzilis & Taryn Dinkelman & Emily Oster & Rebecca Thornton & Deric Zanera, 2010. "New cellular networks in Malawi: Correlates of service rollout and network performance," NBER Working Papers 16616, National Bureau of Economic Research, Inc.
    10. Jenny C. Aker, 2010. "Information from Markets Near and Far: Mobile Phones and Agricultural Markets in Niger," American Economic Journal: Applied Economics, American Economic Association, vol. 2(3), pages 46-59, July.
    11. Koutroumpis, Pantelis, 2009. "The economic impact of broadband on growth: A simultaneous approach," Telecommunications Policy, Elsevier, Elsevier, vol. 33(9), pages 471-485, October.
    12. Raul Katz & Stephan Vaterlaus & Patrick Zenhäusern & Stephan Suter, 2010. "The impact of broadband on jobs and the German economy," Intereconomics: Review of European Economic Policy, Springer, Springer, vol. 45(1), pages 26-34, January.
    13. Hardy, Andrew P., 1980. "The role of the telephone in economic development," Telecommunications Policy, Elsevier, Elsevier, vol. 4(4), pages 278-286, December.
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