IDEAS home Printed from https://ideas.repec.org/p/zbw/itse19/205164.html
   My bibliography  Save this paper

The impact of mobile technology on economic growth: global insights from 2000-2017 developments

Author

Listed:
  • Bahia, Kalvin
  • Castells, Pau
  • Pedrós, Xavier

Abstract

The last two decades have seen a lot research devoted to understanding the economic impact of telecoms infrastructure; however, the explosion of mobile technology, especially in the last decade, has received much less attention. This study addresses important evidence gaps by considering the impact of different mobile technologies on economic growth and also assessesing whether mobile has an additive impact when fixed broadband is in place. Applying IV and DPD models, our results show that during the 2000-2017 period, a 10% increase in mobile penetration raises GDP per capita by 0.59- 0.76%, over and above the impact of fixed broadband. Disentangling mobile's average impact, we find a 10% increase in 2G mobile connectivity increases GDP per capita by 0.37-0.81%, while mobile broadband generates an additional impact of 0.12-0.72%. Our analysis suggests the magnitude of returns on mobile infrastructure upgrades does not diminish: mobile technology's impact is statistically on par with that of fixed broadband, and mobile broadband's average impact is also aligned with that of 2G connectivity. Moreover, the analysis shows that mobile's impact increases with a country's skills and with labour and capital from the services and industry sector, meaning there are important complementarities with mobile as a general purpose technology.

Suggested Citation

  • Bahia, Kalvin & Castells, Pau & Pedrós, Xavier, 2019. "The impact of mobile technology on economic growth: global insights from 2000-2017 developments," 30th European Regional ITS Conference, Helsinki 2019 205164, International Telecommunications Society (ITS).
  • Handle: RePEc:zbw:itse19:205164
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/205164/1/Bahia-et-al.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Daire McCoy & Sean Lyons & Edgar Morgenroth & Donal Palcic & Leonie Allen, 2018. "The impact of broadband and other infrastructure on the location of new business establishments," Journal of Regional Science, Wiley Blackwell, vol. 58(3), pages 509-534, June.
    2. Georges Vivien Houngbonon & François Jeanjean, 2016. "What level of competition intensity maximises investment in the wireless industry?," PSE-Ecole d'économie de Paris (Postprint) halshs-01510421, HAL.
    3. Hilal Atasoy, 2013. "The Effects of Broadband Internet Expansion on Labor Market Outcomes," ILR Review, Cornell University, ILR School, vol. 66(2), pages 315-345, April.
    4. Chris Forman & Avi Goldfarb & Shane Greenstein, 2012. "The Internet and Local Wages: A Puzzle," American Economic Review, American Economic Association, vol. 102(1), pages 556-575, February.
    5. Cronin, Francis J. & Colleran, Elisabeth K. & Herbert, Paul L. & Lewitzky, Steven, 1993. "Telecommunications and growth : The contribution of telecommunications infrastructure investment to aggregate and sectoral productivity," Telecommunications Policy, Elsevier, vol. 17(9), pages 677-690, December.
    6. Lam, Pun-Lee & Shiu, Alice, 2010. "Economic growth, telecommunications development and productivity growth of the telecommunications sector: Evidence around the world," Telecommunications Policy, Elsevier, vol. 34(4), pages 185-199, May.
    7. Muto, Megumi & Yamano, Takashi, 2009. "The Impact of Mobile Phone Coverage Expansion on Market Participation: Panel Data Evidence from Uganda," World Development, Elsevier, vol. 37(12), pages 1887-1896, December.
    8. Georges Vivien Houngbonon & François Jeanjean, 2016. "What level of competition intensity maximises investment in the wireless industry?," Post-Print halshs-01510421, HAL.
    9. B. Mak Arvin & Rudra P. Pradhan, 2014. "Broadband penetration and economic growth nexus: evidence from cross-country panel data," Applied Economics, Taylor & Francis Journals, vol. 46(35), pages 4360-4369, December.
    10. Jenny C. Aker, 2010. "Information from Markets Near and Far: Mobile Phones and Agricultural Markets in Niger," American Economic Journal: Applied Economics, American Economic Association, vol. 2(3), pages 46-59, July.
    11. Sang H. Lee & John Levendis & Luis Gutierrez, 2012. "Telecommunications and economic growth: an empirical analysis of sub-Saharan Africa," Applied Economics, Taylor & Francis Journals, vol. 44(4), pages 461-469, February.
    12. Giulia Canzian & Samuele Poy & Simone Schüller, 2015. "Broadband Diffusion and Firm Performance in Rural Areas: Quasi-Experimental Evidence," FBK-IRVAPP Working Papers 2015-10, Research Institute for the Evaluation of Public Policies (IRVAPP), Bruno Kessler Foundation.
    13. Ward, Michael R. & Zheng, Shilin, 2016. "Mobile telecommunications service and economic growth: Evidence from China," Telecommunications Policy, Elsevier, vol. 40(2), pages 89-101.
    14. Lars-Hendrik Roller & Leonard Waverman, 2001. "Telecommunications Infrastructure and Economic Development: A Simultaneous Approach," American Economic Review, American Economic Association, vol. 91(4), pages 909-923, September.
    15. Houngbonon, Georges Vivien & Jeanjean, François, 2016. "What level of competition intensity maximises investment in the wireless industry?," Telecommunications Policy, Elsevier, vol. 40(8), pages 774-790.
    16. Greenstein, Shane M & Spiller, Pablo T, 1995. "Modern Telecommunications Infrastructure and Economic Activity: An Empirical Investigation," Industrial and Corporate Change, Oxford University Press, vol. 4(4), pages 647-665.
    17. Kolko, Jed, 2012. "Broadband and local growth," Journal of Urban Economics, Elsevier, vol. 71(1), pages 100-113.
    18. Edquist, Harald & Goodridge, Peter & Haskel, Jonathan & Li, Xuan & Lindquist, Edward, 2018. "How important are mobile broadband networks for the global economic development?," Information Economics and Policy, Elsevier, vol. 45(C), pages 16-29.
    19. Koutroumpis, Pantelis, 2009. "The economic impact of broadband on growth: A simultaneous approach," Telecommunications Policy, Elsevier, vol. 33(9), pages 471-485, October.
    20. Czernich, Nina, 2014. "Does broadband internet reduce the unemployment rate? Evidence for Germany," Information Economics and Policy, Elsevier, vol. 29(C), pages 32-45.
    21. Andrzej Cieślik & Magdalena Kaniewska, 2004. "Telecommunications Infrastructure and Regional Economic Development: The Case of Poland," Regional Studies, Taylor & Francis Journals, vol. 38(6), pages 713-725.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    ICT; Mobile broadband; Economic growth; Instrumental variables;

    JEL classification:

    • F62 - International Economics - - Economic Impacts of Globalization - - - Macroeconomic Impacts
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:itse19:205164. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - Leibniz Information Centre for Economics). General contact details of provider: http://www.itseurope.org/ .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.