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The impact of mobile phone penetration on African inequality

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  • Asongu, Simplice A

Abstract

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. 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. The findings suggest that mobile penetration is pro-poor, as it has a positive income equality effect. ‘Mobile phone’-oriented poverty reduction channels are discussed.

Suggested Citation

  • Asongu, Simplice A, 2012. "The impact of mobile phone penetration on African inequality," MPRA Paper 46041, University Library of Munich, Germany, revised 08 Apr 2013.
  • Handle: RePEc:pra:mprapa:46041
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    References listed on IDEAS

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    1. Isaac Mbiti & David N. Weil, 2015. "Mobile Banking: The Impact of M-Pesa in Kenya," NBER Chapters,in: African Successes, Volume III: Modernization and Development, pages 247-293 National Bureau of Economic Research, Inc.
    2. Mas, Ignacio & Radcliffe, Daniel, 2011. "Mobile Payments Go Viral: M-PESA in Kenya," Journal of Financial Transformation, Capco Institute, vol. 32, pages 169-182.
    3. Albanesi, Stefania, 2007. "Inflation and inequality," Journal of Monetary Economics, Elsevier, vol. 54(4), pages 1088-1114, May.
    4. Simplice A. Asongu, 2013. "Investment And Inequality In Africa: Which Financial Channels Are Good For The Poor?," The African Finance Journal, Africagrowth Institute, vol. 15(2), pages 43-65.
    5. Simplice A. Asongu, 2013. "How has Mobile Phone Penetration Stimulated Financial Development in Africa?," Journal of African Business, Taylor & Francis Journals, vol. 14(1), pages 7-18, April.
    6. Hisako Kai & Shigeyuki Hamori, 2009. "Globalization, financial depth, and inequality in Sub-Saharan Africa," Economics Bulletin, AccessEcon, vol. 29(3), pages 2025-2037.
    7. Simplice Asongu, 2015. "Financial Sector Competition and Knowledge Economy: Evidence from SSA and MENA Countries," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 6(4), pages 717-748, December.
    8. By Ales BulÌr, 2001. "Income Inequality: Does Inflation Matter?," IMF Staff Papers, Palgrave Macmillan, vol. 48(1), pages 1-5.
    9. Demombynes, Gabriel & Thegeya, Aaron, 2012. "Kenya's mobile revolution and the promise of mobile savings," Policy Research Working Paper Series 5988, The World Bank.
    10. Simplice A Asongu, 2013. "How do financial reforms affect inequality through financial sector competition? Evidence from Africa," Economics Bulletin, AccessEcon, vol. 33(1), pages 401-414.
    11. Antonio Rodriguez Andres, 2006. "Software piracy and income inequality," Applied Economics Letters, Taylor & Francis Journals, vol. 13(2), pages 101-105.
    12. 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, vol. 39(3), pages 168-181, February.
    13. Simplice A. Asongu, 2014. "Knowledge Economy and Financial Sector Competition in African Countries," African Development Review, African Development Bank, vol. 26(2), pages 333-346, June.
    14. Simplice Asongu, 2014. "Software piracy, inequality and the poor: evidence from Africa," Journal of Economic Studies, Emerald Group Publishing, vol. 41(4), pages 526-553, July.
    15. Muhammad Shahbaz, 2010. "Income inequality-economic growth and non-linearity: a case of Pakistan," International Journal of Social Economics, Emerald Group Publishing, vol. 37(8), pages 613-636, July.
    16. 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.
    17. 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.
    18. Edward O'Boyle & Meade O'Boyle, 2012. "Global poverty, hunger, death, and disease," International Journal of Social Economics, Emerald Group Publishing, vol. 39(1), pages 4-17, January.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Simplice A. Asongu, 2015. "May the Soul of the IFS Financial System Definition RIP in Developing Countries," The International Journal of Economic Behavior - IJEB, Faculty of Business and Administration, University of Bucharest, pages 15-30.
    2. Asongu, Simplice & Nwachukwu, Jacinta, 2017. "Building Knowledge Economies in Africa: A Survey of Policies and Strategies," MPRA Paper 81701, University Library of Munich, Germany.
    3. Simplice Asongu & Uchenna Efobi & Ibukun Beecroft, 2015. "Inclusive Human Development in Pre-crisis Times of Globalization-driven Debts," African Development Review, African Development Bank, vol. 27(4), pages 428-442, December.
    4. Simplice A. Asongu, 2014. "Knowledge Economy and Financial Sector Competition in African Countries," African Development Review, African Development Bank, vol. 26(2), pages 333-346, June.
    5. repec:kap:netnom:v:18:y:2017:i:2:d:10.1007_s11066-017-9118-6 is not listed on IDEAS
    6. Asongu, Simplice A., 2013. "How do institutions matter in the income-equalizing effect of mobile phone penetration?," European Economic Letters, European Economics Letters Group, vol. 2(2), pages 56-61.
    7. Asongu, Simplice A. & Le Roux, Sara, 2017. "Enhancing ICT for inclusive human development in Sub-Saharan Africa," Technological Forecasting and Social Change, Elsevier, vol. 118(C), pages 44-54.
    8. Simplice A. Asongu & Jacinta C. Nwachukwu, 2017. "Not all that glitters is gold: ICT and inclusive human development in Sub-Saharan Africa," International Journal of Happiness and Development, Inderscience Enterprises Ltd, vol. 3(4), pages 303-322.
    9. Simplice Asongu, 2016. "Reinventing Foreign Aid For Inclusive And Sustainable Development: Kuznets, Piketty And The Great Policy Reversal," Journal of Economic Surveys, Wiley Blackwell, vol. 30(4), pages 736-755, September.
    10. Simplice Asongu, 2015. "Liberalisation and Financial Sector Competition: A Critical Contribution to the Empirics with an African Assessment," South African Journal of Economics, Economic Society of South Africa, vol. 83(3), pages 425-451, September.
    11. repec:eme:ijsepp:ijse-08-2016-0221 is not listed on IDEAS
    12. Asongu, Simplice & Amavilah, Voxi & Andrés, Antonio R., 2014. "Economic Implications of Business Dynamics for KE-Associated Economic Growth and Inclusive Development in African Countries," MPRA Paper 63793, University Library of Munich, Germany.
    13. Simplice Asongu & Jacinta C. Nwachukwu, 2017. "Recent finance advances in information technology for inclusive development: a survey," Working Papers 17/009, African Governance and Development Institute..
    14. Simplice Asongu & Ndemaze Asongu, 2018. "The comparative exploration of mobile money services in inclusive development," International Journal of Social Economics, Emerald Group Publishing, vol. 45(1), pages 124-139, January.
    15. Simplice A. Asongu & Nicholas Biekpe, 2017. "Government quality determinants of ICT adoption in sub-Saharan Africa," Netnomics, Springer, vol. 18(2), pages 107-130, December.
    16. Uchenna Efobi & Belmondo Tanankem & Simplice Asongu, 2016. "Technological Advancement and the Evolving Gender Identities: A Focus on the Level of Female Economic Participation in Sub-Saharan Africa," Working Papers 16/045, African Governance and Development Institute..
    17. Simplice Asongu & Jacinta C. Nwachukwu, 2017. "Comparative human development thresholds for absolute and relative pro-poor mobile banking in developing countries," Working Papers 17/007, African Governance and Development Institute..
    18. Asongu, Simplice, 2014. "Reinventing foreign aid for inclusive and sustainable development: a survey," MPRA Paper 65300, University Library of Munich, Germany.
    19. Asongu, Simplice & De Moor, Lieven, 2015. "Recent advances in finance for inclusive development: a survey," MPRA Paper 67299, University Library of Munich, Germany.
    20. Asongu, Simplice A. & Odhiambo, Nicholas M., 2017. "Mobile banking usage, quality of growth, inequality and poverty in developing countries," Working Papers 23396, University of South Africa, Department of Economics.
    21. Asongu, Simplice & Nwachukwu, Jacinta, 2016. "Determinants of Mobile Phone Penetration: Panel Threshold Evidence from Sub-Saharan Africa," MPRA Paper 77308, University Library of Munich, Germany.
    22. Simplice Asongu & Jacinta Nwachukwu, 2017. "The Role of Openness in the Effect of ICT on Governance," Working Papers 17/050, African Governance and Development Institute..
    23. Asongu Simplice, 2013. "Mobile banking and mobile phone penetration: which is more pro-poor in Africa?," Working Papers 13/033, African Governance and Development Institute..
    24. Simplice Asongu & Jacinta C. Nwachukwu, 2017. "Educational Quality Thresholds in the Diffusion of Knowledge with Mobile Phones for Inclusive Human Development in Sub-Saharan Africa," Working Papers 17/057, African Governance and Development Institute..
    25. Simplice Asongu & Ivo Leke, 2017. "External Flows and Inclusive Human Development in Sub-Saharan Africa," Working Papers 17/058, African Governance and Development Institute..

    More about this item

    Keywords

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

    JEL classification:

    • E00 - Macroeconomics and Monetary Economics - - General - - - General
    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • L9 - Industrial Organization - - Industry Studies: Transportation and Utilities
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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