{"id":1907,"date":"2011-05-01T19:30:03","date_gmt":"2011-05-01T19:30:03","guid":{"rendered":"http:\/\/casgroups.case.edu\/physics-senior-projects\/?p=1907"},"modified":"2016-06-07T19:36:23","modified_gmt":"2016-06-07T19:36:23","slug":"macroeconomic-effects-of-cell-phones-in-the-developing-world","status":"publish","type":"post","link":"https:\/\/casgroups.case.edu\/physics-senior-projects\/macroeconomic-effects-of-cell-phones-in-the-developing-world\/","title":{"rendered":"Macroeconomic Effects of Cell Phones in the Developing World"},"content":{"rendered":"

Trevor Allen with Silvia Prina, Dept. of Economics<\/span><\/h3>\n

Macroeconomic Effects of Cell Phones in the Developing World<\/u><\/span><\/h3>\n

The project will estimate the macro-economic effects, in terms of annual GDP growth, of mobile-phone penetration in developing countries. Telecommunications networks can have various beneficial effects on economic efficiency, such as easy dissemination of price information and reduced risk in transferring remittances. Fixed land-line telecom networks have been very slow to expand in poorer nations, whereas mobile-phone usage has grown rapidly in the past decade. The work will be based on a 2005 article by Waverman, Fuss, & Meschi in which a 10% increase in mobile penetration was found to cause a 0.59% increase in economic growth. However, the paper’s methodology casts doubt on the results. Waverman et al. used the generalized-method-of-movements (GMM) econometric model, utilizing lagged land-line penetration as an instrument variable (IV) for mobile penetration. However for several analytical and mechanical reasons this approximation is inaccurate, leading to potential bias in the IV estimators; mobile phones are frequently used in developing countries as a substitute<\/em> for fixed-line communication, not as a complement. This project will attempt to reduce estimator bias by adapting GMM or using different models, testing all regressors for endogeneity (two-way causality), and\/or developing an alternative exogenous instrument as a proxy for mobile penetration. Depending on the availability of data, closer analysis may performed on a small number of nations as case studies representative of the developing world as a whole. If time permits, further research into the impacts on additional impacts of increased mobile-phone coverage may be explored, such as changes in foreign direct investment (FDI), remittance and migration patterns, etc.<\/p>\n","protected":false},"excerpt":{"rendered":"

Trevor Allen with Silvia Prina, Dept. of EconomicsMacroeconomic Effects of Cell Phones in the Developing World<\/p>\n

The project will estimate the macro-economic effects, in terms of annual GDP growth, of mobile-phone penetration in developing countries. Telecommunications networks can have various beneficial effects on economic efficiency, such as easy dissemination of price information and reduced risk in transferring remittances. Fixed land-line telecom networks have been very slow to expand in poorer nations, whereas mobile-phone usage has grown rapidly in the past decade. The work will be based on a 2005 article by Waverman, Fuss, & Meschi in which a 10% increase in mobile penetration was found to cause a 0.59% increase in economic growth.<\/p>\n

Continue reading… Macroeconomic Effects of Cell Phones in the Developing World<\/span><\/a><\/p>\n","protected":false},"author":19,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":""},"categories":[47,1],"tags":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/casgroups.case.edu\/physics-senior-projects\/wp-json\/wp\/v2\/posts\/1907"}],"collection":[{"href":"https:\/\/casgroups.case.edu\/physics-senior-projects\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/casgroups.case.edu\/physics-senior-projects\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/casgroups.case.edu\/physics-senior-projects\/wp-json\/wp\/v2\/users\/19"}],"replies":[{"embeddable":true,"href":"https:\/\/casgroups.case.edu\/physics-senior-projects\/wp-json\/wp\/v2\/comments?post=1907"}],"version-history":[{"count":2,"href":"https:\/\/casgroups.case.edu\/physics-senior-projects\/wp-json\/wp\/v2\/posts\/1907\/revisions"}],"predecessor-version":[{"id":1927,"href":"https:\/\/casgroups.case.edu\/physics-senior-projects\/wp-json\/wp\/v2\/posts\/1907\/revisions\/1927"}],"wp:attachment":[{"href":"https:\/\/casgroups.case.edu\/physics-senior-projects\/wp-json\/wp\/v2\/media?parent=1907"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/casgroups.case.edu\/physics-senior-projects\/wp-json\/wp\/v2\/categories?post=1907"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/casgroups.case.edu\/physics-senior-projects\/wp-json\/wp\/v2\/tags?post=1907"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}