Impact of mobile phone penetration on economic growth in SADC

Author

Chimhondoro, Takunda

Title

Impact of mobile phone penetration on economic growth in SADC

Abstract

This study examined the impact of mobile phone usage on economic growth in the Southern African Development Community (SADC) region, using data from eight countries between 2000 and 2021. The research used panel data from world bank. The research found that an increase in mobile phone penetration has a positive effect on economic growth, with financial inclusion being a key driver of this growth. The findings suggest that mobile phone penetration plays a crucial role in promoting economic growth. The study recommends that authorities implement policies to promote the use of mobile phones, such as reducing communication costs to stimulate mobile phone diffusion and drive growth. Regulatory authorities and central governments should work together to craft policies that promote financial inclusion in the SADC region. This can be achieved by designing attractive interest rate packages and promoting policy consistency to encourage investment and economic growth. Using the system of Generalised Moment of Moments (GMM) estimator to address endogeneity issues, the results confirm that mobile phone penetration contributes significantly to economic growth in SADC. Part of the positive effect of mobile penetration comes from financial inclusion.

Date

June 2024

Publisher

BUSE

Keywords

Communication costs

Mobile phone

Economic growth

Supervisor

Miss P. Hlupho