Mobile Phone Ownership and Welfare: Evidence from South Africa’s Household Survey

Digitalization is accelerating as countries fight against the COVID-19 pandemic. In this context, the impact of mobile phone ownership on welfare (represented by consumption) is estimated for South Africa using rich household survey data in a panel format, the National Income Dynamics Study (NIDS) w...

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Bibliographic Details
Main Author: Miyajima, Ken
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2020
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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245 0 0 |a Mobile Phone Ownership and Welfare: Evidence from South Africa’s Household Survey  |c Ken Miyajima 
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300 |a 28 pages 
651 4 |a South Africa 
653 |a Government and the Monetary System 
653 |a Wealth 
653 |a Payment Systems 
653 |a Income 
653 |a Economywide Country Studies: Africa 
653 |a Econometric analysis 
653 |a Industries: Financial Services 
653 |a Technology 
653 |a Regimes 
653 |a Saving 
653 |a Mobile banking 
653 |a Microeconomic Analyses of Economic Development 
653 |a Aggregate Factor Income Distribution 
653 |a National accounts 
653 |a Education 
653 |a Estimation 
653 |a Standards 
653 |a Consumption; Economics 
653 |a Education: General 
653 |a Econometric models 
653 |a Computer applications in industry & technology 
653 |a Monetary Systems 
653 |a Consumption 
653 |a Macroeconomics 
653 |a Macroeconomics: Consumption 
653 |a Business and Economics 
653 |a Estimation techniques 
653 |a Econometrics 
653 |a Banks and banking, Mobile 
653 |a Econometrics & economic statistics 
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520 |a Digitalization is accelerating as countries fight against the COVID-19 pandemic. In this context, the impact of mobile phone ownership on welfare (represented by consumption) is estimated for South Africa using rich household survey data in a panel format, the National Income Dynamics Study (NIDS) with 5 waves spanning 2008–17. The literature argues mobile phone ownership facilitates greater and more affordable access to information and generate welfare gains. We attempt to disentangle the two-way relationship between consumption and mobile phone ownership, which is inherently difficult, and add to the literature by investigating distributional effects. Estimated results suggest that consumption of mobile phone owners tends to be 10–20 percent above that of non-owners. Benefits tend to accrue more on individuals with relatively low levels of consumption, potentially as a greater number of new users, likely with higher marginal positive effects on consumption, and a faster rate of user cost reduction help reap greater gains