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Mobile phone penetration and its impact on inequality in the Western Balkan countries

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  • Mjellma Carabregu Vokshi But Dedaj Adel Ben Youssef Valentin Toçi

    (Faculty of Economics, University of Prishtina “Hasan Prishtina”. Faculty of Economics, University of Prishtina “Hasan Prishtina”. GREDEG-CNRS & University Côte d’Azur. Faculty of Economics, University of Prishtina “Hasan Prishtina”)

Abstract

The aim of this paper is to analyse the effect of the mobile phone penetration rate on inequality in Western Balkan countries and to provide empirical evidence. We explore the question of whether cell phone diffusion helps to decrease inequality and whether it has a positive income equality effect. In the developed conceptual framework, we consider that people with access to mobile telephony also have access to Wi-Fi and GPS and that individuals can perform different activities, such as engaging in e-commerce, e-governance, health, and education; paying bills; saving money; and transferring money to other persons. This represents a good foundation for poor persons exit the cycle of deprivation and leads to the development of equal opportunities. We analyse the impact of mobile phone penetration on inequality in Western Balkan countries by using ordinary least squares and two-stage least squares models (Asongu, 2015). Our results confirm the income-redistributive effect of mobile phone penetration. JEL Classification: E00, G20, I3031

Suggested Citation

  • Mjellma Carabregu Vokshi But Dedaj Adel Ben Youssef Valentin Toçi, 2019. "Mobile phone penetration and its impact on inequality in the Western Balkan countries," Zagreb International Review of Economics and Business, Faculty of Economics and Business, University of Zagreb, vol. 22(2), pages 111-130, November.
    • Handle: RePEc:zag:zirebs:v:22:y:2019:i:2:p:111-130
    DOI: 10.2478/zireb-2019-0023
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    Cited by:

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    2. Adams, Samuel & Akobeng, Eric, 2021. "ICT, governance and inequality in Africa," Telecommunications Policy, Elsevier, vol. 45(10).

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    More about this item

    Keywords

    Mobile phones; Western Balkan countries; inequality; poverty;
    All these keywords.

    JEL classification:

    • E00 - Macroeconomics and Monetary Economics - - General - - - General
    • G20 - Financial Economics - - Financial Institutions and Services - - - General

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