[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/idb/wpaper/4417.html
   My bibliography  Save this paper

Does Privatization Deliver? Access to Telephone Services and Household Income in Poor Rural Areas Using a Quasi-Natural Experiment in Peru

Author

Listed:
  • Alberto Chong
  • Virgilio Galdo
  • Máximo Torero
Abstract
This paper takes advantage of a quasi-natural experiment in Peru by which the privatized telecommunications company was required by government to randomly install and operate public pay phones in small rural towns throughout the national territory. Using a specially designed household survey for a representative sample of rural towns, it is possible to link access to telephone services with household income. It was found that, regardless of the income measurement, most characteristics of public telephone usage are positively linked with income. Remarkably, the benefits occur at both non-farm and farm income levels. Not only do the findings hold when using instrumental variables, but they are also further confirmed when using propensity scores matching methods.

Suggested Citation

  • Alberto Chong & Virgilio Galdo & Máximo Torero, 2005. "Does Privatization Deliver? Access to Telephone Services and Household Income in Poor Rural Areas Using a Quasi-Natural Experiment in Peru," Research Department Publications 4417, Inter-American Development Bank, Research Department.
    • Handle: RePEc:idb:wpaper:4417
    as

    Download full text from publisher

    File URL: http://www.iadb.org/research/pub_hits.cfm?pub_id=WP-535&pub_file_name=pubWP-535.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Escobal, Javier, 2001. "The Determinants of Nonfarm Income Diversification in Rural Peru," World Development, Elsevier, vol. 29(3), pages 497-508, March.
    2. Lars-Hendrik Roller & Leonard Waverman, 2001. "Telecommunications Infrastructure and Economic Development: A Simultaneous Approach," American Economic Review, American Economic Association, vol. 91(4), pages 909-923, September.
    3. Bruce A. Babcock, 1990. "The Value of Weather Information in Market Equilibrium," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 72(1), pages 63-72.
    4. Stigler, George J., 2011. "Economics of Information," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 5, pages 35-49.
    5. Jalan, Jyotsna & Ravallion, Martin, 2003. "Does piped water reduce diarrhea for children in rural India?," Journal of Econometrics, Elsevier, vol. 112(1), pages 153-173, January.
    6. Chong, Alberto E. & López-de-Silanes, Florencio, 2004. "Privatization in Mexico," IDB Publications (Working Papers) 1538, Inter-American Development Bank.
    7. Rama,Martin G., 1997. "Efficient public sector downsizing," Policy Research Working Paper Series 1840, The World Bank.
    8. López-de-Silanes, Florencio & Serra, Pablo & Gertler, Paul & Schargrodsky, Ernesto & Anuatti, Francisco & Galiani, Sebastián & Chong, Alberto E. & Pombo, Carlos & Sturzenegger, Federico & Torero, Máxi, 2005. "Privatization in Latin America: Myths and Reality," IDB Publications (Books), Inter-American Development Bank, number 348, November.
    9. Godtland, Erin M & Sadoulet, Elisabeth & De Janvry, Alain & Murgai, Rinku & Ortiz, Oscar, 2004. "The Impact of Farmer Field Schools on Knowledge and Productivity: A Study of Potato Farmers in the Peruvian Andes," Economic Development and Cultural Change, University of Chicago Press, vol. 53(1), pages 63-92, October.
    10. Andrew, T. N. & Petkov, D., 0. "The need for a systems thinking approach to the planning of rural telecommunications infrastructure," Telecommunications Policy, Elsevier, vol. 27(1-2), pages 75-93, February.
    11. Kebede, Yohannes & Gunjal, Kisan & Coffin, Garth, 1990. "Adoption of new technologies in Ethiopian agriculture: The case of Tegulet-Bulga district Shoa province," Agricultural Economics, Blackwell, vol. 4(1), pages 27-43, April.
    12. David McKenzie & Dilip Mookherjee, 2003. "The Distributive Impact of Privatization in Latin America: Evidence from Four Countries," Economía Journal, The Latin American and Caribbean Economic Association - LACEA, vol. 0(Spring 20), pages 161-234, January.
    13. Feather, Peter M. & Amacher, Gregory S., 1994. "Role of information in the adoption of best management practices for water quality improvement," Agricultural Economics, Blackwell, vol. 11(2-3), pages 159-170, December.
    14. David de Ferranti & Guillermo E. Perry & William Foster & Daniel Lederman & Alberto Valdés, 2005. "Beyond the City: The Rural Contribution to Development," World Bank Publications - Books, The World Bank Group, number 7328.
    15. Jonathan Isham, 2002. "The Effect of Social Capital on Fertiliser Adoption: Evidence from Rural Tanzania," Journal of African Economies, Centre for the Study of African Economies, vol. 11(1), pages 39-60, March.
    16. Sebastian Galiani & Paul Gertler & Ernesto Schargrodsky, 2005. "Water for Life: The Impact of the Privatization of Water Services on Child Mortality," Journal of Political Economy, University of Chicago Press, vol. 113(1), pages 83-120, February.
    17. Steven N. Durlauf, 2002. "On the Empirics of Social Capital," Economic Journal, Royal Economic Society, vol. 112(483), pages 459-479, November.
    18. Matambalya, Francis & Wolf, Susanna, 2001. "The Role Of Ict For The Performance Of Smes In East Africa. Empirical Evidence From Kenya And Tanzania," Discussion Papers 18717, University of Bonn, Center for Development Research (ZEF).
    19. Leff, Nathaniel H, 1984. "Externalities, Information Costs, and Social Benefit-Cost Analysis for Economic Development: An Example from Telecommunications," Economic Development and Cultural Change, University of Chicago Press, vol. 32(2), pages 255-276, January.
    20. Jacoby, Hanan C, 2000. "Access to Markets and the Benefits of Rural Roads," Economic Journal, Royal Economic Society, vol. 110(465), pages 713-737, July.
    21. Yohannes Kebede & Kisan Gunjal & Garth Coffin, 1990. "Adoption of New Technologies in Ethiopian Agriculture: The Case of Tegulet‐Bulga District, Shoa Province," Agricultural Economics, International Association of Agricultural Economists, vol. 4(1), pages 27-43, April.
    22. Albert Chong & Florencio López-de-Silanes, 2004. "Privatization in Latin America: What Does the Evidence Say?," Economía Journal, The Latin American and Caribbean Economic Association - LACEA, vol. 0(Spring 20), pages 37-111, January.
    23. Peter M. Feather & Gregory S. Amacher, 1994. "Role of information in the adoption of best management practices for water quality improvement," Agricultural Economics, International Association of Agricultural Economists, vol. 11(2-3), pages 159-170, December.
    24. Thomas N. Hubbard, 2003. "Information, Decisions, and Productivity: On-Board Computers and Capacity Utilization in Trucking," American Economic Review, American Economic Association, vol. 93(4), pages 1328-1353, September.
    25. Allen, Beth, 1990. "Information as an Economic Commodity," American Economic Review, American Economic Association, vol. 80(2), pages 268-273, May.
    26. Bayes, Abdul, 2001. "Infrastructure and rural development: insights from a Grameen Bank village phone initiative in Bangladesh," Agricultural Economics, Blackwell, vol. 25(2-3), pages 261-272, September.
    27. Ted Tschang & Mathurot Chuladul & Thuy Thu Le, 2002. "Scaling-up information services for development: a framework of increasing returns for telecentres," Journal of International Development, John Wiley & Sons, Ltd., vol. 14(1), pages 129-141.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Eduardo Nakasone & Maximo Torero, 2016. "A text message away: ICTs as a tool to improve food security," Agricultural Economics, International Association of Agricultural Economists, vol. 47(S1), pages 49-59, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alberto Chong & Virgilio Galdo & Máximo Torero, 2005. "¿Cumple la privatización lo que promete? El acceso a los servicios telefónicos y el ingreso familiar en zonas rurales pobres empleando un experimento cuasinatural en Perú," Research Department Publications 4418, Inter-American Development Bank, Research Department.
    2. Chong, Alberto E. & Galdo, Virgilio & Torero, Maximo, 2006. "Does Privatization Deliver? Access to Telephone Services and Household Income in Poor Rural Areas Using a Quasi-Natural Experiment for Peru," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25691, International Association of Agricultural Economists.
    3. Alberto Chong & Virgilio Galdo & Máximo Torero, 2009. "Access to Telephone Services and Household Income in Poor Rural Areas Using a Quasi‐natural Experiment for Peru," Economica, London School of Economics and Political Science, vol. 76(304), pages 623-648, October.
    4. David Martimort & Stephane Straub, 2006. "Privatization and Changes in Corruption Patterns: The Roots of Public Discontent," Edinburgh School of Economics Discussion Paper Series 147, Edinburgh School of Economics, University of Edinburgh.
    5. Sebastian Galiani & Martin Gonzalez‐Rozada & Ernesto Schargrodsky, 2009. "Water Expansions in Shantytowns: Health and Savings," Economica, London School of Economics and Political Science, vol. 76(304), pages 607-622, October.
    6. Felipe Barrera‐Osorio & Mauricio Olivera & Carlos Ospino, 2009. "Does Society Win or Lose as a Result of Privatization? The Case of Water Sector Privatization in Colombia," Economica, London School of Economics and Political Science, vol. 76(304), pages 649-674, October.
    7. Parker, David & Kirkpatrick, Colin & Figueira-Theodorakopoulou, Catarina, 2008. "Infrastructure regulation and poverty reduction in developing countries: A review of the evidence and a research agenda," The Quarterly Review of Economics and Finance, Elsevier, vol. 48(2), pages 177-188, May.
    8. Sebastian Galiani & Martín González Rozada & Ernesto Schargrodsky, 2007. "Expansiones de Agua en las Barriadas: Salud y Ahorros," Research Department Publications 3235, Inter-American Development Bank, Research Department.
    9. Bernard, Tanguy & Gabre-Madhin, Eleni Z. & Taffesse, Alemayehu Seyoum, 2008. "Heterogeneous Impacts Of Cooperatives On Smallholders’ Commercialization Behavior: Evidence From Ethiopia," 2007 Second International Conference, August 20-22, 2007, Accra, Ghana 52161, African Association of Agricultural Economists (AAAE).
    10. Mauricio Olivera & Felipe Barrera, 2007. "La sociedad gana o pierde como resultado de la privatizacion? El caso de Colombia," Research Department Publications 3231, Inter-American Development Bank, Research Department.
    11. Sebastián Galiani and Federico Sturzenegger, "undated". "The Impact of Privatization on the Earnings of Restructured Workers," Business School Working Papers longterm, Universidad Torcuato Di Tella.
    12. Bernard, Tanguy & Gabre-Madhin, Eleni Z. & Taffesse, Alemayehu Seyoum, 2007. "Smallholders' commercialization through cooperatives: A diagnostic for Ethiopia," IFPRI discussion papers 722, International Food Policy Research Institute (IFPRI).
    13. Stephane Straub, 2008. "Infrastructure and Growth in Developing Countries: Recent Advances and Research Challenges," Edinburgh School of Economics Discussion Paper Series 179, Edinburgh School of Economics, University of Edinburgh.
    14. Stephane Straub, 2011. "Infrastructure and Development: A Critical Appraisal of the Macro-level Literature," Journal of Development Studies, Taylor & Francis Journals, vol. 47(5), pages 683-708.
    15. George R.G. Clarke & Katrina Kosec & Scott Wallsten, 2009. "Has private participation in water and sewerage improved coverage? Empirical evidence from Latin America," Journal of International Development, John Wiley & Sons, Ltd., vol. 21(3), pages 327-361.
    16. Ngokkuen, Chuthaporn & Grote, Ulrike, 2012. "Geographical Indication for Jasmine Rice: Applying a Logit Model to Predict Adoption Behavior of Thai Farm Households," Quarterly Journal of International Agriculture, Humboldt-Universitaat zu Berlin, vol. 51(2), pages 1-29, May.
    17. Martimort, David & Straub, Stéphane, 2009. "Infrastructure privatization and changes in corruption patterns: The roots of public discontent," Journal of Development Economics, Elsevier, vol. 90(1), pages 69-84, September.
    18. Calderon, Cesar & Serven, Luis, 2004. "The effects of infrastructure development on growth and income distribution," Policy Research Working Paper Series 3400, The World Bank.
    19. Vivien Foster & José Luis Guasch & Luis Andrés & Thomas Haven, 2008. "The Impact of Private Sector Participation in Infrastructure: Lights, Shadows, and the Road Ahead," IDB Publications (Books), Inter-American Development Bank, number 59818, February.
    20. Antonio Estache, 2010. "A survey of impact evaluations of infrastructure projects, programs and policies," Working Papers ECARES 2010_005, ULB -- Universite Libre de Bruxelles.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:idb:wpaper:4417. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Felipe Herrera Library (email available below). General contact details of provider: https://edirc.repec.org/data/iadbbus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.