Working Paper: CEPR ID: DP14489
Authors: Brian Dillon; Jenny Aker; Joshua Blumenstock
Abstract: Mobile phones reduce the cost of communicating with existing social contacts, but do not eliminate frictions in forming new relationships. We report the findings of a two-sided randomized control trial in central Tanzania, centered on the production and distribution of a "Yellow Pages" phone directory with contact information for local enterprises. Enterprises randomly assigned to be listed in the directory receive morebusiness calls, make greater use of mobile money, and are more likely to employ workers. There is evidence of positive spillovers, as both listed and unlisted enterprises in treatment villages experience significant increases in sales relative to a pure control group. Households randomly assigned to receive copies of the directory make greater use their phones for farming, are more likely to rent land and hire labor, have lower rates of crop failure, and sell crops for weakly higher prices. Willingness-to-pay to be listed in future directories is significantly higher for treated enterprises.
Keywords: mobile phones; search costs; telephone directories; small and medium enterprises; agriculture; tanzania
JEL Codes: O13; D83; Q13; M37
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| printed enterprise-focused mobile telephone directory (L96) | enterprises listed in the directory (L53) |
| enterprises listed in the directory (L53) | business-related phone calls (L84) |
| printed enterprise-focused mobile telephone directory (L96) | likelihood to use mobile money (E41) |
| printed enterprise-focused mobile telephone directory (L96) | likelihood to hire additional workers (J23) |
| printed enterprise-focused mobile telephone directory (L96) | households receiving the directory (R20) |
| households receiving the directory (R20) | use of phones for farming activities (L96) |
| households receiving the directory (R20) | likelihood to receive mobile money (L96) |
| households receiving the directory (R20) | likelihood to experience crop failure (Q15) |