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Catra Evan Ramadhani
Faculty of Economics and Business, University of Indonesia, Depok, Indonesia; Faculty of Arts, Business, Law, and Economics, the University of Adelaide, Adelaide, Australia
Agriculture, Biological Sciences & Forestry Economics, Econometrics & Finance Energy Environmental Science Social Sciences

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Household Economic Welfare During the Rise of Mobile Phone Expansion in Indonesia Catra Evan Ramadhani
Jurnal Perencanaan Pembangunan: The Indonesian Journal of Development Planning Vol. 7 No. 1 (2023): April 2023
Publisher : Ministry of National Development Planning Republic of Indonesia/Bappenas

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.36574/jpp.v7i1.407

Abstract

The proliferation of mobile phones in developing countries has significant implications for those countries. Although numerous studies have examined the various advantages of mobile phone use, the relationship between mobile phone access and the economic welfare of households has received comparatively little attention. This paper examines the effects of mobile phone on household expenditures in 2007 and 2014 utilising the Indonesian Family Life Survey (IFLS) combined with Potential Village Survey (PODES). Ordinary Least Square (OLS), Endogenous Treatment Regression (ETR), quantile regression, and two-way fixed effect estimations are used to identify the homogeneous and heterogeneous effects of mobile phone use. According to the estimated results, mobile phone access and signal quality significantly increases household expenditure. According to the results of quantile regression, mobile phone access has the greatest effect on the upper expenditure distributions. It is highlighting the importance of promoting a policy that increases mobile phone and the supporting infrastructure on the lower expenditure distributions.
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