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The Effects of Mobile Phone Infrastructure: Evidence from Rural Peru

Diether Beuermann (), Christopher McKelvey and Carlos Sotelo
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Christopher McKelvey: University of Wisconsin-Madison
Carlos Sotelo: Fondo de Inversion en Telecomunicaciones

No 2012-012, Working Papers from Banco Central de Reserva del Perú

Abstract: We exploit the timing of cell phone coverage in rural Peru to investigate its effects on economic development. We exploit information regarding the location, date of installation and technical characteristics of cell phone towers in order to construct coverage patterns at the village level from 2001 through 2007. We then merge this information with national household surveys spanning the same period. Estimates suggest an increase of 7 percentage points in the likelihood of self reported cell phone ownership after coverage, an increase of 7.5 percent in yearly household expenditures, and a 13.5 percent increase in the value of assets.

Keywords: Mobile coverage; economic development (search for similar items in EconPapers)
JEL-codes: O1 O3 Q13 Q16 (search for similar items in EconPapers)
Date: 2012-04
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