Emergic: Rajesh Jain's Blog

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Mobile Phones and Economic Growth

May 14th, 2007 · No Comments

The Economist writes about a paper by Robert Jensen, which has the story of how mobiles helped the Kerala fishermen increase incomes and pay for the mobiles:

Fishermen’s profits rose by 8% on average and consumer prices fell by 4% on average. Higher profits meant the phones typically paid for themselves within two months. And the benefits are enduring, rather than one-off. All of this, says Mr Jensen, shows the importance of the free flow of information to ensure that markets work efficiently. Information makes markets work, and markets improve welfare, he concludes.

Tags: Telecom

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