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Original Articles

The economics of the Internet of Things in the Global South

Pages 311-339 | Received 14 Feb 2016, Accepted 17 May 2016, Published online: 19 Jul 2016
 

Abstract

While the Internet of Things (IoT) is not new, its key components are becoming increasingly affordable now, which makes the technology extremely attractive for the Global South. By collecting data from various IoT sources, combining them with data from other sources and using big data analytics, decisions can be made and actions can be taken that can have important economic, social, ecological and environmental implications in these countries. The most visible impacts of the IoT in these countries include improvements in agricultural and food systems, enhancement of environmental security and resource conservation, achievement of better healthcare, public health and medicine, and enhancement of the efficiency of key industries. This paper provides an overview of how the IoT is currently being used in the Global South. It also discusses the opportunities and challenges that IoT initiatives present there. The analysis indicates that the IoT may address some of the institutional bottlenecks, technological challenges and key sources of high transaction costs. On the other hand, various sources of underdevelopment may act as barriers to full utilisation of the IoT.

Notes

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17. Ibid.

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23. North, “Dealing with a Nonergodic World,” 5.

24. North, “Dealing with a Nonergodic World,” 6.

25. Ibid.

26. North, “Dealing with a Nonergodic World,” 5.

27. Ibid.

28. Chui et al., “The Internet of Things.”

29. Odengo, “East Africa.”

30. Popper, “Can Mobile Banking?”

31. Dosi, “Technological Paradigms.”

32. Acemoglu, “Political Economy”; Acemoglu et al. “Institutions as a Fundamental Cause”; and North, “Dealing with a Nonergodic World.”

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40. Nagin and Pogarsky, “Integrating Celerity.”

41. Binswanger-Mkhize, “Is there too much Hype?”

42. Kalan, “Tech fix.”

43. Ibid.

44. Rosenberg, “Doing more than Praying.”

45. Gulati, “Drones and Doves.”

46. Schneider, “Five Ways.”

47. Rosenberg, “Doing more than Praying.”

48. Tian, “Auto Data Company.”

49. Ibid.

50. English.news.cn, “News Analysis.”

51. un.org, Developing Index-based Insurance.

52. North, “Dealing with a Nonergodic World.”

53. Timesofindia.com, “Fitbit launches Fitness Trackers.”

54. North, “Dealing with a Nonergodic World,” 5.

55. Schutzer, “Impact of the Internet of Things.”

56. Acemoglu, “Political Economy”; and Acemoglu et al., “Institutions as a Fundamental Cause.”

57. Freischlad, “Drones over the Rice Paddy.”

58. Fareasternagriculture.com. “Bringing Big Data to Farming.”

59. Shamah, “Israeli Big Data.”

60. Acemoglu, “Political Economy”; and Acemoglu et al., “Institutions as a Fundamental Cause.”

61. allafrica.com, “East Africa.”

62. Kariuki, “The Internet of Things.”

63. netafim.com, “Netafim signs $17 Million Greenhouse Deal.”

64. Levitt, “Start-up Nation.”

65. netafim.com, “Netafim signs $17 Million Greenhouse Deal.”

66. dimsums.blogspot.ca, “Internet of Things.”

67. Ibid.

68. Wang and Min, “Improving Food Safety.”

69. Higginbotham, “In China.”

70. Reardon et al., “Global Change in Agrifood Grades.”

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74. Knight, “How Artificial Intelligence.”

75. Shumway, “Randy Shumway.”

76. Howard, “How IBM is using Big Data.”

77. Woddy, “Vietnam taps Big Data.”

78. Dubow, “The World Bank Big Data.”

79. Mallya, “Big Data.”

80. Wheatley, “Vietnam’s Cities use Big Data.”

81. Woddy, “Vietnam taps Big Data.”

82. newscenter.philips.com, “Philips launches Smart Air Purifier.”

83. bbc.com, “Keen Businesses.”

84. Acemoglu, “Political Economy”; Acemoglu et al., “Institutions as a Fundamental Cause”; and Lucas, “Why doesn’t Capital Flow?”

85. Everett, “Out of Africa.”

86. Mg.co.za, “Kruger Park’s Sugar Road.”

87. Everett, “Out of Africa.”

88. Gilpin, “10 Big Data Projects.”

89. Ferguson, “Old Smartphones.”

90. Gilpin, “10 Big Data Projects.”

91. 21stcentech.com, “How Old Cell Phones.”

92. Butler, “Discarded Cell Phones.”

93. Revell, “A Network of Recycled Phones.”

94. Schuurman, “Paradigms Lost.”

95. ITWeb, “Internet of Things boost Healthcare.”

96. Assaabloy.com, “Biometric Fingerprint Sensors.”

98. Pretz, “An Urban Reality.”

99. Wheatley, “Vietnam’s Cities use Big Data.”

100. Rajan, “Lessons in Big Data.”

101. Saad Filho, “The Rise and Decline.”

102. Ehrhardt-Martinez, “Social Determinants.”

103. Bughin et al., “An Executive’s Guide.”

104. Hagel et al., “The Future of Manufacturing.”

105. prnewswire.com, “China Internet of Things (IoT) Market Report.”

106. ibm.com, “Made in IBM Labs.”

107. Swedberg, “Chinese RFID Adoption.”

108. Ibid.

109. Acemoglu, “Political Economy”; and Acemoglu et al., “Institutions as a Fundamental Cause.”

110. Rfidjournal.com, “RFID frequently asked Questions.”

111. Dosi, “Technological Paradigms and Technological Trajectories.”

112. Hartani, “Into the Internet of Things Era.”

113. Bolton, “Developing Countries will Drive.”

114. ITU, Measuring the Information Society.

115. Bughin et al., “An Executive’s Guide.”

116. Ibid.

117. Badkar, “Why South Korean Farmers.”

118. Saunders, “The Internet of Everything.”

119. Harpham, “How the Internet of Things.”

120. John, “Reshaping Global Healthcare Strategy.”

121. Warc.com, “IoT is a Draw for Asian Consumers.”

122. Kshetri, “Big Data’s Role.”

123. Kshetri et al., “Development of a Smart City.”

124. Rozek, “As I see It.”

125. Regine, “Korea’s U-city.”

126. nytimes.com, “Korea’s High-tech Utopia.”

127. utopicus2013.blogspot.com, “PRISM, Big Brother and the City of Songdo.”

128. Acemoglu, “Political Economy”; and Acemoglu et al., “Institutions as a Fundamental Cause.”

129. Higginbotham, “In China.”

130. Kshetri, “Diffusion and Effects.”

131. Perlroth, “Smart City Technology.”

132. Acemoglu, “Political Economy”; and Acemoglu et al., “Institutions as a Fundamental Cause.”

133. mckinsey.com, “The Internet of Things.”

134. itu.int, “The Internet of Things.”

135. Robert, “Internet of Things.”

136. WashingtonsBlog, “The Whole Point,” para 4.

137. Acemoglu, “Political Economy”; and Acemoglu et al., “Institutions as a Fundamental Cause.”

138. theguardian.com, “China plans to track Beijing Citizens.”

139. Townsend, “Your City is spying on You.”

140. Rai, “India’s High Demand.”

141. Swanson, “How Baidu, Tencent and Alibaba.”

142. North, “Dealing with a Nonergodic World,” 5.

143. Shamah, “Israeli Big Data.”

144. Ibid.

145. Berg, “Smart Cities will take many Forms.”

146. Ibid.

147. Ibid.

148. boston.com, “South Korean City to test Limits.”

149. itu4u.wordpress.com, “Lost Something on Internet?”

150. Jian, “Tracing Dairy Products.”

151. Zhou, Digital Object Architecture-based Product Quality Safety Information Traceability System.”

152. Rosenberg, “Doing more than Praying.”

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