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The Effects of Mobile Phone Infrastructure: Evidence from Rural Peru

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Author Info

  • Beuermann, Diether

    (Inter-American Development Bank
    CENTRUM Business School)

  • McKelvey, Christopher

    (University of Wisconsin-Madison)

  • Sotelo, Carlos

    (Fondo de Inversion en Telecomunicaciones)

Abstract

We exploit the timing of cell phone coverage in rural Peru to investigate its effects on economic development. We exploit information regarding the location, date of installation and technical characteristics of cell phone towers in order to construct coverage patterns at the village level from 2001 through 2007. We then merge this information with national household surveys spanning the same period. Estimates suggest an increase of 7 percentage points in the likelihood of self reported cell phone ownership after coverage, an increase of 7.5 percent in yearly household expenditures, and a 13.5 percent increase in the value of assets.

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Bibliographic Info

Paper provided by Banco Central de Reserva del PerĂº in its series Working Papers with number 2012-012.

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Date of creation: Apr 2012
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Handle: RePEc:rbp:wpaper:2012-012

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Keywords: Mobile coverage; economic development;

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  1. Goyal, Aparajita, 2010. "Information, direct access to farmers, andrural market performance in central India," Policy Research Working Paper Series 5315, The World Bank.
  2. Greenwald, Bruce C & Stiglitz, Joseph E, 1986. "Externalities in Economies with Imperfect Information and Incomplete Markets," The Quarterly Journal of Economics, MIT Press, vol. 101(2), pages 229-64, May.
  3. Garbade, Kenneth D & Silber, William L, 1978. "Technology, Communication and the Performance of Financial Markets: 1840-1975," Journal of Finance, American Finance Association, vol. 33(3), pages 819-32, June.
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