The Role of Mobile Phone and Internet Use in the Performance of Rural Non-Farm Enterprises: An Analysis of Indonesian Rural Households

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Abstract

Rural non-farm enterprises have an increasingly important role in economic
development in developing countries. The performance of rural non-farm
enterprisess is expected to continue to improve in line with the use of
telecommunications technology in their business. Such improvement resulted
from the use of communication technologies such as mobile phones and internet
that are able to reduce information search and expand market information. This
study analyzes the role of mobile phone and internet use in the performance of
rural non-farm enterprises. By using household-level data from the Fifth Wave
of the Indonesian family life survey (IFLS 5) in 2014 and applying the propensity
score matching method, the study found that the use of mobile phones and the
internet has a positive impact on the performance of rural non-farm household
enterprisess. It shows that the telecommunications infrastructure development
policy in rural areas is able to provide economic improvement for rural
households.
Original languageEnglish
JournalBuletin Pos dan Telekomunikasi
Publication statusPublished - 2020

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