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Broadband Internet and Household Welfare in Senegal

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  • Masaki,Takaaki
  • Granguillhome Ochoa,Rogelio
  • Rodriguez Castelan,Carlos

Abstract

Senegal has experienced a rapid expansion in fixed and mobile broadband internet infrastructure over the past decade. This paper examines the relationship between access to broadband internet and household welfare between 2011 and 2018 by integrating the latest two rounds of household budget surveys with data on the location of fiber-optic transmission nodes and coverage maps of 3G mobile technology. The results show that 3G coverage is associated with a 14 percent increase in total consumption and a 10 percent decline in extreme poverty. These results are robust to controlling for household demographics and other spatial characteristics, such as region fixed effects, road density, nighttime lights, and elevation above sea level, as well as for access to complementary digital infrastructure, such as 2G coverage or fixed broadband internet. The findings are also robust to an instrumental variable approach that relies on distance to 3G coverage in neighboring areas. These effects are larger among households in urban areas and households headed by men or younger cohorts. Although they are in the same direction, the welfare effects of proximity to fixed broadband infrastructure are not statistically significant.

Suggested Citation

  • Masaki,Takaaki & Granguillhome Ochoa,Rogelio & Rodriguez Castelan,Carlos, 2020. "Broadband Internet and Household Welfare in Senegal," Policy Research Working Paper Series 9386, The World Bank.
    • Handle: RePEc:wbk:wbrwps:9386
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    References listed on IDEAS

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    1. Fernandes, Ana M. & Mattoo, Aaditya & Nguyen, Huy & Schiffbauer, Marc, 2019. "The internet and Chinese exports in the pre-ali baba era," Journal of Development Economics, Elsevier, vol. 138(C), pages 57-76.
    2. Bahia, Kalvin & Castells, Pau & Cruz, Genaro & Masaki, Takaaki & Pedrós, Xavier & Pfutze, Tobias & Rodriguez Castelan, Carlos & Winkler, Hernan, 2020. "The Welfare Effects of Mobile Broadband Internet: Evidence from Nigeria," IZA Discussion Papers 13219, Institute of Labor Economics (IZA).
    3. Decoster,Xavier Stephane & Lara Ibarra,Gabriel & Mendiratta,Vibhuti & Santacroce,Marco, 2019. "Welfare Effects of Introducing Competition in the Telecom Sector in Djibouti," Policy Research Working Paper Series 8850, The World Bank.
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    Cited by:

    1. Granguillhome Ochoa, Rogelio & Lach, Samantha & Masaki, Takaaki & Rodríguez-Castelán, Carlos, 2022. "Mobile internet adoption in West Africa," Technology in Society, Elsevier, vol. 68(C).
    2. Rodríguez-Castelán, Carlos & Araar, Abdelkrim & Malásquez, Eduardo A. & Granguillhome Ochoa, Rogelio, 2022. "Competition reform and household welfare: A microsimulation analysis of the telecommunication sector in Ethiopia," Telecommunications Policy, Elsevier, vol. 46(2).
    3. Behice CANATAN & Gökhan ÖZBİLGE & Egemen İPEK, 2023. "A Socioeconomic Analysis in Terms of Household Digital Technology Ownership," Sosyoekonomi Journal, Sosyoekonomi Society, issue 31(56).
    4. Bahia,Kalvin & Castells,Pau & Masaki,Takaaki & Cruz,Genaro & Rodriguez Castelan,Carlos & Sanfelice,Viviane, 2021. "Mobile Broadband Internet, Poverty and Labor Outcomes in Tanzania," Policy Research Working Paper Series 9749, The World Bank.
    5. Houngbonon,Georges Vivien & Mensah,Justice Tei & Traore,Nouhoum-000531164, 2022. "The Impact of Internet Access on Innovation and Entrepreneurship in Africa," Policy Research Working Paper Series 9945, The World Bank.
    6. David Roodman, 2024. "The Arrival of Fast Internet and Employment in Africa: Comment," Papers 2401.13694, arXiv.org.

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    More about this item

    Keywords

    Information Technology; Telecommunications Infrastructure; Inequality; Energy Policies&Economics;
    All these keywords.

    JEL classification:

    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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