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Mobile Telephony and Economic Growth in Developing Economies

Mobile Telephony and Economic Growth in Developing Economies

Heli Virta, Kaisu Puumalainen, Anni Tuppura
ISBN13: 9781616928186|ISBN10: 1616928182|EISBN13: 9781616928209
DOI: 10.4018/978-1-61692-818-6.ch011
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MLA

Virta, Heli, et al. "Mobile Telephony and Economic Growth in Developing Economies." Mobile Information Communication Technologies Adoption in Developing Countries: Effects and Implications, edited by Ahmed Gad Abdel-Wahab and Ahmed Ahmed A. El-Masry, IGI Global, 2011, pp. 161-172. https://doi.org/10.4018/978-1-61692-818-6.ch011

APA

Virta, H., Puumalainen, K., & Tuppura, A. (2011). Mobile Telephony and Economic Growth in Developing Economies. In A. Abdel-Wahab & A. El-Masry (Eds.), Mobile Information Communication Technologies Adoption in Developing Countries: Effects and Implications (pp. 161-172). IGI Global. https://doi.org/10.4018/978-1-61692-818-6.ch011

Chicago

Virta, Heli, Kaisu Puumalainen, and Anni Tuppura. "Mobile Telephony and Economic Growth in Developing Economies." In Mobile Information Communication Technologies Adoption in Developing Countries: Effects and Implications, edited by Ahmed Gad Abdel-Wahab and Ahmed Ahmed A. El-Masry, 161-172. Hershey, PA: IGI Global, 2011. https://doi.org/10.4018/978-1-61692-818-6.ch011

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Abstract

This chapter investigates the influence of mobile phone penetration on economic growth in developing economies. It is widely agreed that telecommunications infrastructure has a positive effect on GDP growth. The empirical evidence concerns mainly fixed line telephony and is mostly conducted with samples from developed countries. Mobile telephony, on the other hand, may be particularly important in those low-income countries, where landlines are not accessible to all. As there also is some evidence that mobile technology may encourage innovative entrepreneurial activity, it is likely that mobile telephony has a great positive impact on welfare especially in developing economies. To examine the role of mobile telephone penetration in economic growth, we use difference and system GMM estimators with a sample of low-income and lower middle-income countries and find mobile telephony to boost economic growth. This result suggests that extensive mobile cellular network coverage facilitates economic development in developing countries.

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