Mobile Telephony and Economic Growth in Developing Economies

2012 ◽  
pp. 74-85
Author(s):  
Heli Virta ◽  
Kaisu Puumalainen ◽  
Anni Tuppura

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.

Author(s):  
Heli Virta ◽  
Kaisu Puumalainen ◽  
Anni Tuppura

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.


Author(s):  
Abhijit Bhattacharya ◽  
Archita Ghosh

A good infrastructure is actually the base behind the growth of an economy. In the present age of globalization accessibility of information is a very important component of infrastructure. Studies carried out on the effect of internet on economic growth are mostly either on high income countries only or on a large number of countries belonging to different income groups. Keeping in mind the differential impact of internet on economic growth of countries with different initial conditions, we have attempted in this chapter a study on the impact of internet use on economic growth in 39 lower middle income and low income countries during 2002-2011. Applying panel data regression techniques we have found a positive significant impact of internet use on economic growth of low income countries. The emergence of crisis adversely affected this growth process, overruling the positive impact of internet use.


2004 ◽  
Vol 9 (6) ◽  
pp. 757-780 ◽  
Author(s):  
DEBRA K. ISRAEL

This paper uses household-level survey data from a 1989 Harris poll conducted in 12 developing and three developed countries to examine the empirical relationship between the support for paying higher taxes for environmental protection and per capita national income. Results from ordered probit estimation suggest that as per capita real gross domestic product rises, controlling for other household characteristics, the strength of the support for somewhat higher taxes for environmental protection is falling for low-income countries and rising for high-income countries. The evidence also suggests that environmental protection may be important to people in developing countries during the process of economic growth. The high level of support for environmental protection found among the lower-income African countries included in this study is one result that warrants additional research. Higher economic growth rates are also found to be associated with greater support for environmental protection.


2013 ◽  
pp. 241-262 ◽  
Author(s):  
Roy Kwon

Conventional economic wisdom maintains that the reduction of domestic import restrictions assists in the development of less developed countries. But far from being a settled debate, the empirical research on tariffs and economic growth is much more controversial than is commonly recognized. In fact, so contentious and unsettled is this mode of inquiry that the research of some scholars directly contradicts the findings of others. In light of this difficulty encountered by researchers, the current study argues that the tariff~growth link is best analyzed by exploring the conditional effect of import restrictions on the development of low-income countries. Utilizing a panel dataset with information for 69 less developed countries, the results of this investigation show that tariff interactions with domestic investment and labor participation, respectively, augments the growth-generating impact of these variables. In addition, the constituent terms reveal that domestic investment and labor-force participation produces robust negative associations with economic growth when removing their tariff contingent effects. Taken as a whole, the evidence illustrates the value of exploring the indirect relationship between tariffs and economic growth as well as the potential usefulness of restrictive import policies for development in the periphery.


2011 ◽  
Vol 1 (1) ◽  
pp. 152 ◽  
Author(s):  
Kausar Yasmeen ◽  
Ambreen Anjum ◽  
Kashifa Yasmeen ◽  
Sidra Twakal

To check the two Objectives of the study one exploring the impact of work remittance on economic growth and second is Impact of work remittance on private investment and total consumption, 25 years’ time series data collected from the Economic survey of Pakistan for the time 1984-2009. The methodology used for the analysis, is Regression model so for regression we have used OLS (ordinary least square model).the work remittance has positively related with the Private investment and total consumption which results increase in GDP and economic growth of Pakistan. This research favor the study of Burki (1991),Ahmad(1986), Charless (1989) Adam(1998) and Darry (2005) this research may be helpful for other low income countries, they can analysis the Workers’ remittances impact on Private investment and Total consumption  of their countries to encourage the workers remittance. Developing countries may request to developed countries to soft police for work remittance in favor of their countries. This might boost their TC and PI which boost up the economy.


Author(s):  
Abhijit Bhattacharya ◽  
Archita Ghosh

A good infrastructure is actually the base behind the growth of an economy. In the present age of globalization accessibility of information is a very important component of infrastructure. Studies carried out on the effect of internet on economic growth are mostly either on high income countries only or on a large number of countries belonging to different income groups. Keeping in mind the differential impact of internet on economic growth of countries with different initial conditions, we have attempted in this chapter a study on the impact of internet use on economic growth in 39 lower middle income and low income countries during 2002-2011. Applying panel data regression techniques we have found a positive significant impact of internet use on economic growth of low income countries. The emergence of crisis adversely affected this growth process, overruling the positive impact of internet use.


Author(s):  
Olga Sokolova

The article is devoted to the formation and implementation of state structural policy, which is closely linked to economic growth and development of the economy as a whole. Economic growth must be sustainable and long-lasting, which requires a combination of all types and instruments of structural policy, depending on the time period and level of functioning of the economy. Due to structural changes, low-income countries can bridge the gap and catch up with highly developed countries. This relationship is not absolute, the intensity of structural change can be both a consequence and a cause of economic growth. At the same time, all significant and long periods of rapid economic growth after the Second World War, as a rule, took place against the background of pronounced structural reforms within national economies. Due to which these countries demonstrated «economic miracles». Highlighting the main trends of structural reforms in the world economy is important primarily in terms of developing an effective structural policy in Ukraine. The study used methods of analysis and synthesis, historical and logical, grouping and classification, comparison. The content of structural policy has been clarified by domestic and foreign scholars. It is established that the concepts of structural and industrial policy are either identified or there is no clear demarcation line between them. The tools of vertical, horizontal and matrix structural policy are highlighted. American, Japanese and European models of structural policy on the example of the USA, Japan, Germany, France, Great Britain are considered. The structural policy of these countries is formed as a result of applying an integrated approach to its priority areas and the mechanism of its implementation. It has an internal integrative form, which is manifested in the constant increase in the level of interaction with other areas of economic policy, thus creating a synergistic effect of economic development as a whole. The general tendency of structural changes in the world economy is revealed – growth of a share of sphere of services at preservation of rather stable share of the processing industry. Together, they are seen as drivers of economic growth. Adaptive elements of implementation of world experience in "design" of structural policy of Ukraine are offered.


2021 ◽  
pp. 51-70
Author(s):  
I. N. Gurov ◽  
E. Y. Kulikova

The purpose of this paper is to determine how the impact of the bank lending structure on economic growth differs depending on the level of a country’s development. The article provides suggestions on how much one can rely on the leading growth of corporate and consumer bank lending in order to promote economic growth. The study is based on the panel data for 211 countries for the period 1990—2019 using methods of qualitative and quantitative analysis. The authors have identified three groups of the countries where the impact of the bank lending structure on economic growth is different. In the least developed and low-income countries, the leading growth of both consumer and corporate lending has a positive impact on economic growth. As GDP per capita reaches 4,700—7,000 constant 2010 U.S. dollars, the outstripping growth of consumer lending begins to negatively affect economic growth, while corporate lending continues to have a positive impact. As GDP per capita continues to increase, corporate lending also begins to negatively affect economic growth. The GDP per capita threshold level, after which the negative impact of corporate lending begins, ranges from 6,000 to 42,000 constant 2010 U.S. dollars, some estimates allow us to specify these limits from 13,000 to 22,000 constant 2010 U.S. dollars. Such broad boundaries are determined by the fact that the role of the banking sector in investments financing may differ because of the financial sector model and the national economy structure. However, our results show that in the most developed and high-income countries, faster growth in corporate lending will not contribute to economic growth. The study also finds that the share of mortgage loans in GDP has a positive but insignificant effect on economic growth in all groups of the countries.


2018 ◽  
Vol 13 (8) ◽  
pp. 217
Author(s):  
Japhet Jacksoni Katanga ◽  
Seleman Pharles

Globalization can be defined as the process based on international cooperation strategies, the aims of globalization is to expanded the operation of a certain business or service to become into a worldwide level, Globalization facilitate the modern advance technology which help community to undergo the social, political and economic development. Globalization economic has reinforced the margination for African developing economies and make to be dependent for the few primary commodities or service whereby the price and demand are extreme determine by externally. On this outcome it lead some of the African countries to be turn into poverty or economic inequality due let their own resources being determine by developed countries. On these paper you will get a chance to oversee the effect of adaption globalization to Tanzania economic growth.


Author(s):  
Darma Mahadea ◽  
Irrshad Kaseeram

Background: South Africa has made significant progress since the dawn of democracy in 1994. It registered positive economic growth rates and its real gross domestic product (GDP) per capita increased from R42 849 in 1994 to over R56 000 in 2015. However, employment growth lagged behind GDP growth, resulting in rising unemployment. Aim and setting: Entrepreneurship brings together labour and capital in generating income, output and employment. According to South Africa’s National Development Plan, employment growth would come mainly from small-firm entrepreneurship and economic growth. Accordingly, this article investigates the impact unemployment and per capita income have on early stage total entrepreneurship activity (TEA) in South Africa, using data covering the 1994–2015 period. Methods: The methodology used is the dynamic least squares regression. The article tests the assertion that economic growth, proxied by real per capita GDP income, promotes entrepreneurship and that high unemployment forces necessity entrepreneurship. Results: The regression results indicate that per capita real GDP, which increases with economic growth, has a highly significant, positive impact on entrepreneurial activity, while unemployment has a weaker effect. A 1% rise in real per capita GDP results in a 0.16% rise in TEA entrepreneurship, and a 1% rise in unemployment is associated with a 0.25% rise in TEA. Conclusion: There seems to be a strong pull factor, from income growth to entrepreneurship and a reasonable push from unemployment to entrepreneurship, as individuals without employment are forced to self-employment as a necessity, survival mechanism. Overall, a long-run co-integrating relationship seems plausible between unemployment, income and entrepreneurship in South Africa.


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