Amid the Philippines’ push for digital transformation, better access to mobile internet is contributing to higher household wealth nationwide, a new study published by the Manila-based Asian Development Bank (ADB) revealed.

In an ADB economics working paper titled “Mobile Internet Connectivity and Household Wealth in the Philippines,” published on Nov. 7, Zhiwu Wei, Neil Lee, and Yohan Iddawela underscored that the rapid expansion of internet access has been driving substantial economic gains worldwide.

In the Philippines, the ADB paper highlighted that mobile internet connectivity benefits all groups, with stronger positive effects seen in urban areas than in rural communities. However, it noted that their estimates exclude the most densely populated cities, where data strength was relatively weaker.

The paper also noted that mobile internet access has positive effects across different education levels, with wealth gains increasing alongside higher educational attainment, though the results were less statistically significant among those with advanced education.

“Mobile internet helps raise household wealth and that the gains are broadly shared,” it added.

The ADB paper explained that mobile internet connectivity serves as a key part of modern infrastructure, driving economic activity in vital sectors and helping create more employment opportunities.

It added that mobile internet connectivity boosts female participation in occasional and seasonal work, while slightly reducing involvement in full-year employment.

The Philippine Statistics Authority (PSA) reported last week that the employment rate slightly rose to 96.2 percent in September, up from 96.1 percent in August, but remained below a year ago’s 96.3 percent. The PSA added that the labor force participation rate (LFPR) for females in September was 54.1 percent.

The ADB paper also said that mobile internet connectivity supports human capital development by providing better access to information and digital learning resources.

Moreover, the paper emphasized the broad benefits of digital connectivity in fostering inclusive economic growth and contributing to discussions on how mobile internet access affects different segments of society.

However, it stressed that while investments in digital infrastructure yield significant benefits, they alone are not sufficient to drive inclusive economic growth.

“Complementary investments such as digital skills training and improved access to mobile devices will help ensure benefits are more widely and equitably shared,” it said.

The paper highlighted that, as an archipelagic country, the Philippines relies heavily on internet access to connect its regions and stimulate economic activity.

It also noted that the country’s service-driven economy and heavy dependence on remittances may influence how mobile internet access affects household wealth, making the impact potentially different from other countries.

Nonetheless, the ADB paper said that broader and improved mobile internet access can help boost household wealth.

(Ricardo M. Austria)