{
  "title": "Can Mobile Technologies Enhance Productivity? A Structural Model and Evidence from Benin Food Suppliers",
  "publication": "IMF Working Papers, July 26, 2024",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2024/07/26/can-mobile-technologies-enhance-productivity-a-structural-model-and-evidence-from-benin-552512",
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  "summary": "This paper analyzes the drivers of digital technologies adoption and how it affects the productivity of small scale businesses in Africa. We use data collected from two semi-rural markets in Benin, where grains and legumes are key staple foods and one-third of the population has internet access.",
  "sections": [
    {
      "heading": "Overview",
      "content": "- Research objective: Analyze drivers of digital technologies adoption and how adoption affects productivity of small scale businesses in Africa.\n- Context: Data collected from two semi-rural markets in Benin, where grains and legumes are key staple foods and one-third of the population has internet access.\n- Definition: Digital technologies adoption is defined as the use of mobile broadband internet connection through smartphones.\n- Methodology: Develop a structural model to rationalize adoption, usage patterns, and outcomes; empirically test model implications using both reduced-form and structural maximum likelihood estimations."
    },
    {
      "heading": "Data and Methods",
      "content": "- Sample setting: Two semi-rural markets in Benin focused on grains and legumes suppliers.\n- Empirical strategy:\n  - Structural model of digital technologies adoption and usage.\n  - Reduced-form estimations.\n  - Structural maximum likelihood estimations."
    },
    {
      "heading": "Key Findings",
      "content": "- Adoption correlates:\n  - Younger suppliers are more likely to adopt digital technologies.\n  - Wealthier suppliers are more likely to adopt digital technologies.\n  - More educated suppliers are more likely to adopt digital technologies.\n  - Suppliers closely surrounded by other users are more likely to adopt digital technologies.\n- Adoption and productivity:\n  - Adopters perform 4-5 more business transactions each month than non-adopters on average.\n  - Digital technologies adoption could raise the monthly frequency and amounts of trades by up to 50%.\n- Gender differences:\n  - Most adopters are women.\n  - Women’s productivity gains from adoption are lower than those of their male counterparts."
    },
    {
      "heading": "Counterfactual Policy Simulations",
      "content": "- Main simulated interventions and effects:\n  - Upgrading the broadband internet quality yields the largest improvement in adoption rate and productivity gains.\n  - Reducing broadband cost for a given connection quality has only a moderate effect on adoption and productivity.\n  - Improving access to credit increases the adoption rate of constrained suppliers (limited to those facing credit constraints)."
    },
    {
      "heading": "Policy Implications",
      "content": "- Priority intervention: Improve broadband internet quality to maximize adoption rates and productivity gains among small-scale suppliers.\n- Complementary measures:\n  - Cost reductions in connectivity alone are less effective than quality upgrades.\n  - Financial interventions (improved access to credit) mainly boost adoption among credit-constrained suppliers and should be targeted accordingly.\n- Targeting and equity:\n  - Programs aiming to increase digital adoption should account for gender differences in productivity gains and consider complementary support to enhance women’s returns to adoption.\n\nSource: Can Mobile Technologies Enhance Productivity? A Structural Model and Evidence from Benin Food Suppliers — Pierre Nguimkeu and Cedric I Okou, July 26, 2024 (IMF Working Paper No. 2024/163).\n\n---\n\n Content in this bundle\n\n- Working Paper\n  - Working Paper (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Working Paper (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2024/07/26/can-mobile-technologies-enhance-productivity-a-structural-model-and-evidence-from-benin-552512"
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    "Authors: Pierre Nguimkeu, Cedric I Okou",
    "Published: July 26, 2024",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9798400284335.001",
    "Research objective: Analyze drivers of digital technologies adoption and how adoption affects productivity of small scale businesses in Africa.",
    "Context: Data collected from two semi-rural markets in Benin, where grains and legumes are key staple foods and one-third of the population has internet access.",
    "Definition: Digital technologies adoption is defined as the use of mobile broadband internet connection through smartphones.",
    "Methodology: Develop a structural model to rationalize adoption, usage patterns, and outcomes; empirically test model implications using both reduced-form and structural maximum likelihood estimations.",
    "Sample setting: Two semi-rural markets in Benin focused on grains and legumes suppliers.",
    "Empirical strategy:",
    "Adoption correlates:",
    "Adoption and productivity:",
    "Gender differences:",
    "Main simulated interventions and effects:",
    "Priority intervention: Improve broadband internet quality to maximize adoption rates and productivity gains among small-scale suppliers.",
    "Complementary measures:",
    "Targeting and equity:",
    "**Working Paper**"
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