One of the interesting findings about mobile phones is that they grow the economy. In a country without a general landline network – ie, all the poor ones – 10% of the population gaining a mobile increases GDP by 0.5%. No, not the growth rate goes up from 2% to 2.01%. But an additional 0.5% of GDP each year. Which is, by the standards of these things, pretty big.
We also know why too. Being able to contact people means that markets complete, contracts and transactions are possible. It’s no longer necessary to near randomly meet someone physically in order to be able to organise a transaction. Thus more transactions happen – the value added in voluntary transactions being that GDP which is increasing.
Tim Worstall, “Mobile Phones Cut The Murder Rate – For the Same Reason They Grow The Economy”, Continental Telegraph, 2019-05-30.
January 1, 2023
QotD: The amazing economic impact of mobile phones in the developing world
Comments Off on QotD: The amazing economic impact of mobile phones in the developing world
No Comments
No comments yet.
RSS feed for comments on this post.
Sorry, the comment form is closed at this time.
