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The power of information : the impact of mobile phones on farmers'welfare in the Philippines

Author

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  • Labonne, Julien
  • Chase, Robert S.

Abstract

The authors explore the impact of access to information on poor farmers’ consumption. The analysis combines spatially coded data on mobile phone coverage with household panel data on farmers from some of the poorest areas of the Philippines. Both the ordinary least squares and instrumental variable estimates indicate that purchasing a mobile phone has a large, positive impact on the household-level growth rate of per capita consumption. Estimates range from 11 to 17 percent, depending on the sample and the specification chosen. The authors perform a range of reliability tests, the results of which all suggest that the instruments are valid. They also present evidence consistent with the argument that easier access to information allows farmers to strike better price deals within their existing trading relationships and to make better choices in terms of where they choose to sell their goods.

Suggested Citation

  • Labonne, Julien & Chase, Robert S., 2009. "The power of information : the impact of mobile phones on farmers'welfare in the Philippines," Policy Research Working Paper Series 4996, The World Bank.
    • Handle: RePEc:wbk:wbrwps:4996
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    References listed on IDEAS

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    4. Marcel Fafchamps & Ruth Vargas Hill, 2005. "Selling at the Farmgate or Traveling to Market," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(3), pages 717-734.
    5. Moti Jaleta & Cornelis Gardebroek, 2007. "Farm‐gate tomato price negotiations under asymmetric information," Agricultural Economics, International Association of Agricultural Economists, vol. 36(2), pages 245-251, March.
    6. Jenny Aker, 2008. "Does Digital Divide or Provide? The Impact of Cell Phones on Grain Markets in Niger," Working Papers 154, Center for Global Development.
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    Cited by:

    1. Baburin, Vyacheslav & Zemtsov, Stepan, 2014. "Diffussion of ICT-products and "five Russias"," MPRA Paper 68926, University Library of Munich, Germany, revised 10 May 2014.
    2. Haile, Mekbib G. & Wossen, Tesfamicheal & Kalkuhl, Matthias, 2019. "Access to information, price expectations and welfare: The role of mobile phone adoption in Ethiopia," Technological Forecasting and Social Change, Elsevier, vol. 145(C), pages 82-92.
    3. Joseph I. Uduji & Elda N. Okolo-Obasi & Simplice A. Asongu, 2019. "Growth Enhancement Support Scheme (GESS) and Farmers’ Fertilizer Use in Rural Nigeria," Research Africa Network Working Papers 19/055, Research Africa Network (RAN).
    4. Kabbiri, Ronald & Dora, Manoj & Kumar, Vikas & Elepu, Gabriel & Gellynck, Xavier, 2018. "Mobile phone adoption in agri-food sector: Are farmers in Sub-Saharan Africa connected?," Technological Forecasting and Social Change, Elsevier, vol. 131(C), pages 253-261.
    5. Joseph I. Uduji & Elda N. Okolo‐Obasi & Simplice A. Asongu, 2019. "Growth Enhancement Support Scheme (GESS) and Farmers’ Fertilizer Use in Rural Nigeria," African Development Review, African Development Bank, vol. 31(3), pages 348-363, September.
    6. Graham, Carol & Nikolova, Milena, 2013. "Does access to information technology make people happier? Insights from well-being surveys from around the world," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 44(C), pages 126-139.
    7. Mahamadou Roufahi Tankari, 2018. "Mobile Phone and Households¡¯ Poverty: Evidence from Niger," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 43(2), pages 67-84, June.
    8. Jean-Philippe Berrou & François Combarnous & Thomas Eekhout, 2017. "Les TIC : une réponse au défi du développement des micro et petites entreprises informelles en Afrique sub-saharienne ?," Working Papers hal-02148324, HAL.
    9. Aimable Nsabimana & Franklin Amuakwa-Mensah, 2018. "Does mobile phone technology reduce agricultural price distortions? Evidence from cocoa and coffee industries," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 6(1), pages 1-24, December.
    10. Adams, Samuel & Akobeng, Eric, 2021. "ICT, governance and inequality in Africa," Telecommunications Policy, Elsevier, vol. 45(10).
    11. Jianxin Guo & Songqing Jin & Lei Chen & Jichun Zhao, 2018. "Impacts of Distance Education on Agricultural Performance and Household Income: Micro-Evidence from Peri-Urban Districts in Beijing," Sustainability, MDPI, vol. 10(11), pages 1-19, October.
    12. Freddy Castro Badillo & Daniela Londoño Avellaneda & Federico Medina Cifuentes, 2022. "Transacciones en línea y bienestar financiero," Coyuntura Económica, Fedesarrollo, vol. 52, pages 127-150, December.
    13. Camacho, Adriana & Conover, Emily, 2019. "The impact of receiving SMS price and weather information on small scale farmers in Colombia," World Development, Elsevier, vol. 123(C), pages 1-1.
    14. Kamiche Zegarra, J. & Bravo-Ureta, B., 2018. "Are users of market information efficient? A stochastic production frontier model corrected by sample selection," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 275870, International Association of Agricultural Economists.
    15. Jeehye Kim & Parmesh Shah & Joanne Catherine Gaskell & Ashesh Prasann & Akanksha Luthra, 2020. "Scaling Up Disruptive Agricultural Technologies in Africa," World Bank Publications - Books, The World Bank Group, number 33961.

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    Keywords

    E-Business; Access to Finance; Rural Poverty Reduction; Debt Markets; Poverty Lines;
    All these keywords.

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