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The impact of mobile phone penetration on African inequality

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  • Asongu Simplice

    ()
    (Yaoundé/Cameroun)

Abstract

Purpose – The aim of this paper is to complement theoretical and qualitative literature with empirical evidence on the income-redistributive effect of mobile phone penetration in 52 African countries. Design/methodology/approach – Robust Ordinary Least Squares and Two Stage Least Squares empirical strategies are employed. Findings – The findings suggest that mobile penetration is pro-poor, as it has a positive income equality effect. Social implications – ‘Mobile phone’-oriented poverty reduction channels are discussed. Originality/value – It deviates from mainstream country-specific and microeconomic survey-based approaches in the literature and provides the first macroeconomic assessment of the ‘mobile phone’-inequality nexus.

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File URL: http://www.afridev.org/RePEc/agd/agd-wpaper/The-impact-of-mobile-phone-penetration-on-African-inequality.pdf
File Function: Revised version, 2013
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Bibliographic Info

Paper provided by African Governance and Development Institute. in its series Working Papers with number 13/021.

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Length: 18
Date of creation: 14 Apr 2013
Date of revision:
Publication status: Forthcoming in the International Journal of Social Economics
Handle: RePEc:agd:wpaper:13/021

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Keywords: Mobile Phones; Shadow Economy; Poverty; Inequality; Africa;

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References

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  1. Simplice A, Asongu, 2012. "Financial sector competition and knowledge economy: evidence from SSA and MENA countries," MPRA Paper 43009, University Library of Munich, Germany.
  2. Dare Akerele & Siaka Momoh & Samuel A. Adewuyi & Biola B. Phillip & Olumuyiwa F. Ashaolu, 2012. "Socioeconomic determinants of poverty among urban households in South-West Nigeria," International Journal of Social Economics, Emerald Group Publishing, Emerald Group Publishing, vol. 39(3), pages 168-181, March.
  3. Asongu Simplice, 2011. "Investment and Inequality in Africa: which financial channels are good for the poor?," Working Papers, African Governance and Development Institute. 11/015, African Governance and Development Institute..
  4. Jenny C. Aker & Isaac M. Mbiti, 2010. "Mobile Phones and Economic Development in Africa," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 24(3), pages 207-32, Summer.
  5. Asongu Simplice, 2012. "Software piracy, inequality and the poor: evidence from Africa," Working Papers, African Governance and Development Institute. 12/035, African Governance and Development Institute..
  6. Albanesi, Stefania, 2002. "Inflation and Inequality," CEPR Discussion Papers, C.E.P.R. Discussion Papers 3470, C.E.P.R. Discussion Papers.
  7. Antonio Rodriguez Andres, 2006. "Software piracy and income inequality," Applied Economics Letters, Taylor & Francis Journals, Taylor & Francis Journals, vol. 13(2), pages 101-105.
  8. Hisako KAI & Shigeyuki HAMORI, 2009. "Globalization, Financial Depth, and Inequality in Sub-Saharan Africa," Discussion Papers, Graduate School of Economics, Kobe University 0912, Graduate School of Economics, Kobe University.
  9. Simplice A. Asongu, 2013. "How has Mobile Phone Penetration Stimulated Financial Development in Africa?," Journal of African Business, Taylor & Francis Journals, Taylor & Francis Journals, vol. 14(1), pages 7-18, April.
  10. Asongu, Simplice A, 2013. "How do financial reforms affect inequality through financial sector competition? Evidence from Africa," MPRA Paper 44410, University Library of Munich, Germany.
  11. Ales Bulir, 1998. "Income Inequality," IMF Working Papers, International Monetary Fund 98/7, International Monetary Fund.
  12. Enowbi Batuo, Michael & Guidi, Francesco & Mlambo, Kupukile, 2010. "Financial Development and Income Inequality: Evidence from African Countries," MPRA Paper 25658, University Library of Munich, Germany.
  13. Mas, Ignacio & Radcliffe, Daniel, 2011. "Mobile Payments Go Viral: M-PESA in Kenya," Journal of Financial Transformation, Capco Institute, Capco Institute, vol. 32, pages 169-182.
  14. Demombynes, Gabriel & Thegeya, Aaron, 2012. "Kenya's mobile revolution and the promise of mobile savings," Policy Research Working Paper Series, The World Bank 5988, The World Bank.
  15. Edward O'Boyle & Meade O'Boyle, 2012. "Global poverty, hunger, death, and disease," International Journal of Social Economics, Emerald Group Publishing, Emerald Group Publishing, vol. 39(1), pages 4-17, January.
  16. Muhammad Shahbaz, 2010. "Income inequality-economic growth and non-linearity: a case of Pakistan," International Journal of Social Economics, Emerald Group Publishing, Emerald Group Publishing, vol. 37(8), pages 613-636, July.
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Cited by:
  1. Asongu, Simplice A., 2013. "How do institutions matter in the income-equalizing effect of mobile phone penetration?," European Economic Letters, European Economics Letters Group, European Economics Letters Group, vol. 2(2), pages 56-61.
  2. Asongu, Simplice A, 2013. "Liberalization and financial sector competition: a critical contribution to the empirics with an African assessment," MPRA Paper 52212, University Library of Munich, Germany.

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