The Digital Provide: Information (Technology), Market Performance, and Welfare in the South Indian Fisheries Sector

[Knowledge base]

A study of the impact of mobile phones on fisherman in Kerala based on a survey conducted between 1997 and 2001 Jensen (2007), clearly demonstrates the tremendous potential of ICTs in the food market. The paper shows that the introduction of mobile phones in Kerala results in shift in the local price variance from the regional mean price from 62%-69% to 14% or less. Moreover, it appears that fish waste (fishermen who can’t sell their catch) declined from 8%-5% to 0%.  Furthermore, fishermen change their way of selling, from a total autarky to 30%-40% of them selling outside their market. The fact that they sell in other markets and that waste was eliminated is an indicator of price adjustment on the market and therefore of a possible both side welfare increase. As Jensen highlights the creation of information transfer through a mobile network is not only sustainable (they are likely to pay for the mobile service), but also allows information transfer in other sector. This means that there is a potential other positive side effect due to the possession of mobile phone.

For more information see: Jensen (2007), The Digital Provide: Information (Technology), Market Performance, and Welfare in the South Indian Fisheries Sector. Quarterly Journal of Economics. Vol. CXXII, Issue 3: 879-924

Paper available here: http://mmd4d.files.wordpress.com/2009/04/jensen-indian-fisheries.pdf