In developing nations, mobile phones can serve many purposes especially if infrastructure is underdeveloped. They can reduce transaction costs, broaden trade networks, and substitute for costly physical transport, says the Economist.
For example:
Consequently, mobile phones can boost growth considerably. Researchers analysed telephony and economic growth in 92 countries, both rich and poor, between 1980 and 2003. They found:
Because of these clear economic benefits, there is booming subscriber growth. In several sub-Saharan countries, subscriber growth exceeded 150 per cent last year. There are now eight mobile phones for every 100 people in Africa, up from three in 2001.
Source: Calling across the divide, Economist, March 12, 2005.
For text: http://www.cass.cn/webnew/yanjiusuo/cms/show_News_e.asp?id=6094
For more on International: Growth and Technology: http://www.ncpa.org/iss/int/
FMF Policy Bulletin/ 12 April 2005
