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Jensen (2007) studied the digital provide: information (technology), market performance, and welfare in the south Indian fisheries sector

Economics Sep 30, 2020

Jensen (2007) studied the digital provide: information (technology), market performance, and welfare in the south Indian fisheries sector. In this setting, information technologies may improve market performance and increase welfare. Using micro-level survey data, Jensen found that the adoption of mobile phones by fishermen and wholesalers was associated with a dramatic reduction in price dispersion, the complete elimination of waste, and near-perfect adherence to the Law of One Price. Both consumer and producer welfare increased. These results look great and the government of Ghana wishes to adopt this strategy. As a development economist;
a. Explain to the president of Ghana that technology is not a one-side-fit all.
b. Draw the government’s attention to the issue of a technology cluster and discuss its role in this new strategy to be adopted.
c. Explain FIVE (5) possible factors that will affect the rate of innovation adoption among Ghanaian fishermen and wholesalers.

Expert Solution

Technology cluster is the concentration of technology in a particular industry or geographical area. Considering, fisheries sector has not used technology, traditionally, technology clusters will pose as a roadblock to implementation of the strategy.

c) The following can affect innovation adoption among fishermen and salers:

1. Expenses associated with technology

2. Lack of comfort with new ways compared to traditional dealings

3. Lack of availability of competent technology in the said areas

4. Lack of education and skills

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