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How do institutions matter in the income-equalizing effect of mobile phone penetration?

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  • Asongu Simplice

    ()
    (Yaoundé/Cameroun)

Abstract

The object of this paper is to complement theoretical ‘mobile penetration’ literature with empirical evidence in a dual manner: on the one hand, assess the income-redistributive effect of mobile phone penetration and; on the other hand, the instrumentality of good governance in this nexus. Main findings suggest an equalizing income-redistributive effect, with a higher magnitude in the presence of government quality instruments. It follows that, good governance is a necessary condition for a higher income-equalizing effect of mobile phone penetration. The empirical evidence which deviates from mainstream country-specific and microeconomic survey-based approaches is on 52 African countries. ‘Mobile phone’-oriented poverty reduction channels are also discussed.

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File URL: http://www.afridev.org/RePEc/agd/agd-wpaper/Institutions-mobile-phone-penetration-and-the-poor.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 13/027.

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Length: 13
Date of creation: Sep 2013
Date of revision:
Publication status: Forthcoming in European Economics Letters
Handle: RePEc:agd:wpaper:13/027

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

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  1. Ales Bulir, 1998. "Income Inequality," IMF Working Papers, International Monetary Fund 98/7, International Monetary Fund.
  2. Hisako Kai & Shigeyuki Hamori, 2009. "Globalization, financial depth, and inequality in Sub-Saharan Africa," Economics Bulletin, AccessEcon, vol. 29(3), pages 2025-2037.
  3. Asongu, Simplice A., 2013. "On the effectiveness of foreign aid in institutional quality," European Economic Letters, European Economics Letters Group, European Economics Letters Group, vol. 2(1), pages 12-19.
  4. Stefania Albanesi, 2002. "Inflation and Inequality," Macroeconomics, EconWPA 0201002, EconWPA.
  5. 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.
  6. Asongu Simplice, 2013. "The impact of mobile phone penetration on African inequality," Working Papers, African Governance and Development Institute. 13/021, African Governance and Development Institute..
  7. Léonce Ndikumana & Mina Baliamoune-Lutz, 2008. "Corruption and Growth: Exploring the Investment Channel," UMASS Amherst Economics Working Papers, University of Massachusetts Amherst, Department of Economics 2008-08, University of Massachusetts Amherst, Department of Economics.
  8. Jenny Aker and Isaac M. Mbiti, 2010. "Mobile Phones and Economic Development in Africa," Working Papers, Center for Global Development 211, Center for Global Development.
  9. 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.
  10. Antonio Rodriguez Andres, 2006. "Software piracy and income inequality," Applied Economics Letters, Taylor & Francis Journals, Taylor & Francis Journals, vol. 13(2), pages 101-105.
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Cited by:
  1. Asongu, Simplice, 2013. "Mobile banking and mobile phone penetration: which is more pro-poor in Africa?," MPRA Paper 56800, University Library of Munich, Germany.
  2. Asongu, Simplice, 2013. "New financial development indicators: with a critical contribution to inequality empirics," MPRA Paper 56806, University Library of Munich, Germany.

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