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Mobile broadband internet is the main technology through which individuals access the internet in developing countries. Understanding the barriers to broadband adoption is thus a priority in designing policies aiming to expand access and close the digital divide across socioeconomic groups and territories. This paper exploits data from harmonized household expenditure surveys in seven countries in West Africa in 2018/19-a subregion with one of the lowest levels of mobile internet penetration in the world-to identify the main factors that limit mobile broadband internet adoption. Results show that low levels of household consumption and prices of services are two key constraints. One standard deviation increase in household expenditure, about USD 65 per capita per month, is associated with a 6.5 percentage point rise in the probability of adoption, while one standard deviation drop in the price of mobile internet services, about USD 3.60, increases the probability of adoption by 2.4 percentage points. Other determinants include demographic characteristics (sex, age, language, urban location), socioeconomic features (educational attainment, sector of employment), and other factors linked to policy (access to electricity, ownership of assets, alternative means of internet access). Results are robust to specifications focusing only in areas with mobile internet coverage (3G).
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A large fraction of the total supply of paper is produced with technologies that have serious adverse consequences on the environment and cause significant health problems, such as cancer. This paper reports on how Internet adoption affects paper consumption. The study used country-level panel data on Internet penetration and paper consumption disaggregated into various paper categories. The empirical strategy is to use fixed-effect models to study whether countries with faster Internet penetration growth have experienced faster declines in paper consumption. The analysis finds that Internet penetration significantly decreases aggregate paper consumption. Further, the estimates show that Internet growth reduces consumption for the paper categories that are more likely to be affected by the diffusion of the Internet (paper used to print newspapers and books and magazines), whereas the growth of the Internet does not have a statistically significant impact on a paper category unlikely to be affected by the Internet (such as sanitary paper).
Contamination --- Education --- Environment --- Environmental Economics & Policies --- Fixed Effect Model --- Industry --- Internet Adoption --- Paper Consumption --- Pulp & Paper Industry --- Sanitation and Sewerage --- Technology Industry --- Water Supply and Sanitation
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This paper shows how Dutch disease effects may arise solely from a shift in demand following a natural resource discovery. The natural resource wealth increases the demand for non-tradable luxury services due to non-homothetic preferences. Labor that could be used to develop other non-resource tradable sectors is pulled into these service sectors. As a result, manufactures and other tradable goods are more likely to be imported, and learning and productivity improvements accrue to the foreign exporters. However, once the natural resources diminish, there is less income to purchase the services and non-resource tradable goods. Thus, the temporary gain in purchasing power translates into long-term stagnation. As opposed to conventional models where income distribution has no effect on economic outcomes, an unequal distribution of the rents from resource wealth further intensifies the Dutch disease dynamics within this framework.
Contamination --- Currencies and Exchange Rates --- E-Business --- Economic Theory & Research --- Emerging Markets --- Finance and Financial Sector Development --- Fixed Effect Model --- Internet Adoption --- Labor Policies --- Macroeconomics and Economic Growth --- Paper Consumption --- Private Sector Development --- Social Protections and Labor
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Developing countries are implementing policies expanding the adoption and productive use of digital technologies to advance economic development and inclusion. Yet, systematic analyses of the welfare and distributional effects of digital technologies on households and individuals-especially broadband mobile internet-remain limited. To fill this knowledge gap, this paper proposes a simple analytical framework to offer insights on how more equitable access to digital technologies affects household welfare, which can be organized into four areas: (1) determinants of adoption of digital technologies; (2) distributional effects of increasing competition in the information and communication technology industry; (3) welfare and poverty effects of coverage and access to digital technologies; and (4) local economic effects of access to digital technologies. To illustrate the relevance and replicability of this framework across developing countries, the analysis is carried out for Senegal, a country that has recently experienced a rapid expansion in digital infrastructure.
Access to Technology --- Digital Divide --- Digital Economy --- Digital Technology --- Household Welfare --- Inclusive Growth --- Inequality --- Information and Communication Technologies --- Information And Communication Technology --- Information Technology --- Internet Adoption --- Mobile Broadband --- Poverty --- Poverty Reduction --- Technology Adoption
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