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Mobile Phones and Economic Development in Rural Peru

Diether Beuermann (), Christopher McKelvey and Renos Vakis ()

Journal of Development Studies, 2012, vol. 48, issue 11, 1617-1628

Abstract: We estimate the effects of mobile phone coverage on different measures of economic development. We exploit the timing of mobile coverage at the village level merging it with a village-level panel dataset for rural Peru. The main findings suggest that mobile phone expansion has increased household real consumption by 11 per cent, reduced poverty incidence by 8 percentage points and decreased extreme poverty by 5.4 percentage points. Moreover, those benefits appear to be shared by all covered households regardless of mobile ownership.

Date: 2012
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DOI: 10.1080/00220388.2012.709615

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