[kictanet] Determinants of a Digital Divide in Sub-Saharan Africa: A Spatial Econometric Analysis of Cell Phone Coverage, by Piet Buys, Susmita Dasgupta, Tim Thomas, and David Wheeler (February 2008)

Thu Feb 28 09:48:27 EAT 2008

Some good research from the World Bank.

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From: Hsladovich at worldbank.org [mailto:Hsladovich at worldbank.org] On Behalf
Of research at worldbank.org
Sent: Wednesday, February 27, 2008 8:09 PM
Subject: eAlert --> WPS 4516. Determinants of a Digital Divide in
Sub-Saharan Africa: A Spatial Econometric Analysis of Cell Phone Coverage,
by Piet Buys, Susmita Dasgupta, Tim Thomas, and David Wheeler (February
2008)

<http://econ.worldbank.org/external/default/main?menuPK=469435&pagePK=641652
36&piPK=64165141&theSitePK=469382> 

Determinants of a Digital Divide in Sub-Saharan Africa: A Spatial
Econometric Analysis of Cell Phone Coverage 

<http://econ.worldbank.org/external/default/main?pagePK=64165259&theSitePK=4
69372&piPK=64165421&menuPK=64166093&entityID=000158349_20080212114658>
Policy Research Working Paper 4516, Piet Buys, Susmita Dasgupta, Tim Thomas,
and David Wheeler (February 2008) 

<http://www-wds.worldbank.org/external/default/WDSContentServer/IW3P/IB/2008
/02/12/000158349_20080212114658/Rendered/PDF/wps4516.pdf> Download Working
Paper (26 pages) 

Most discussions of the digital divide treat it as a "North-South" issue,
but the conventional dichotomy doesn't apply to cell phones in Sub-Saharan
Africa. Although almost all Sub-Saharan countries are poor by international
standards, they exhibit great disparities in coverage by cell telephone
systems. 

Buys, Dasgupta, Thomas and Wheeler investigate the determinants of these
disparities with a spatially-disaggregated model that employs locational
information for cell-phone towers across over 990,000 4.6-km grid squares in
Sub-Saharan Africa. Using probit techniques, a probability model with
adjustments for spatial autocorrelation has been estimated that relates the
likelihood of cell-tower location within a grid square to potential market
size (proximate population); installation and maintenance cost factors
related to accessibility (elevation, slope, distance from a main road,
distance from the nearest large city); and national competition policy. 

Probit estimates indicate strong, significant results for the supply-demand
variables, and very strong results for the competition policy index.
Simulations based on the econometric results suggest that a generalized
improvement in competition policy to a level that currently characterizes
the best-performing states in Sub-Saharan Africa could lead to huge
improvements in cell-phone area coverage for many states currently with poor
policy performance, and an overall coverage increase of nearly 100 percent. 

 <http://econ.worldbank.org/programs/trade> Produced by the
<http://econ.worldbank.org/WBSITE/EXTERNAL/EXTDEC/EXTRESEARCH/EXTPROGRAMS/EX
TIE/0,,menuPK:475531~pagePK:64168176~piPK:64168140~theSitePK:475520,00.html>
Sustainable Rural and Urban Development ResearchTeam in Development Research
Group ( <http://econ.worldbank.org/programs/trade>
http://econ.worldbank.org/programs/rural-urban) 
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