Graduation Year

2017

Document Type

Open Access Senior Thesis

Degree Name

Bachelor of Arts

Department

Economics

Reader 1

Nayana Bose

Reader 2

Roberto Pedace

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© 2016 Alison Choe

Abstract

In the last decade, there has been an exponential rise in mobile phones in both developed and developed countries. In light of that, this paper investigates whether the expansion of such mobile networks leads to increased entrepreneurial activity. By conducting panel regressions, I find the degree to which various stages of entrepreneurial activity is affected by increased mobile phone subscription rates. I use data from 80 countries from 2007 to 2015 and parse out the different effects between developing and developed countries, and between males and females. I find that larger mobile networks encourage entrepreneurship, particularly in the early stages, with a larger benefit experienced by developed countries compared to developing countries. In addition, more females than males engage in early-stage entrepreneurship due to increased mobile phone subscription rates in developing countries. However, an opposite trend is observed in developed countries. Finally, I also consider potential implications on economic development as a result of such increased business formation.

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