New Study: Cell Phones Encourage Economic Growth
A new report by Deloitte finds that mobile phones have a measurable impact on economic growth. The study’s authors demonstrate that for every 10% shift in American markets from 2G to 3G between 2008 and 2011, per capita GDP increased by 0.4%.
The more that mobile phone users upgraded to 3G, the more data they used. Between 2005 and 2010, mobile data usage shot up by 400% in America. That too had a distinguishable affect on per capita GDP of about 0.4%.
And with mobile penetration, there appears to be some low-hanging fruit for the United States to pluck, so to speak. The study found that a 10% increase in mobile penetration led to a 4.2% rise in Total Factor Productivity (a stat that best measures the impact of innovation). At present, the United States and Canada has an 84% penetration rate that remains far behind the 131% that Western Europe boasts.
As America continues to make the leap from 3G to 4G, we can know that our economy will be healthier for it.