Pervasive Versus Productive: The Case of Mobile Phones in Developing Economies

With statistics pointing to nearly 100% adoption of mobile phones in developed countries and nearly 50% adoption worldwide, mobile phones have become a pervasive portion of our information and communications infrastructure. In many developing countries, mobiles are becoming an important platform for delivering information services. Yet in spite of its rapid adoption, does this mean that cell phones increase productivity? This paper is a country-level analysis of whether investments in mobile phones translate into increased productivity. We find that in the near term, mobiles actually decrease productivity. The long-term benefits differ between developed to developing countries. In developing countries, there is a positive long-term benefit to productivity. In developing countries, however, this study does not find any long-term productivity improvements.