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Mobile Phones and Economic Development in Africa

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  • Jenny C. Aker
  • Isaac M. Mbiti

Abstract

Access to and use of mobile telephony in sub-Saharan Africa has increased dramatically over the past decade. Mobile telephony has brought new possibilities to the continent. Across urban-rural and rich-poor divides, mobile phones connect individuals to individuals, information, markets, and services. These effects can be particularly dramatic in rural Africa, where in many places mobile phones have represented the first modern telecommunications infrastructure of any kind. Mobile phones have greatly reduced communication costs, thereby allowing individuals and firms to send and to obtain information quickly and cheaply on a variety of economic, social, and political topics. An emerging body of research shows that the reduction in communication costs associated with mobile phones has tangible economic benefits, improving agricultural and labor market efficiency and producer and consumer welfare in specific circumstances and countries. This paper first examines the evolution of mobile phone coverage and adoption in sub-Saharan Africa over the past decade. We then explore the main channels through which mobile phones can effect economic outcomes and appraise current evidence of its potential to improve economic development. We conclude with directions for future research and outline the necessary conditions for mobile phones to promote broader economic development in Africa.

Suggested Citation

  • Jenny C. Aker & Isaac M. Mbiti, 2010. "Mobile Phones and Economic Development in Africa," Journal of Economic Perspectives, American Economic Association, vol. 24(3), pages 207-232, Summer.
  • Handle: RePEc:aea:jecper:v:24:y:2010:i:3:p:207-32
    Note: DOI: 10.1257/jep.24.3.207
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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