Digital Infrastructure and Local Economic Development: Early Internet in Sub-Saharan Africa

Moritz Goldbeck and Valentin Lindlacher

No 11308, CESifo Working Paper Series from CESifo

Abstract: We investigate the impact of early internet availability at basic speeds on local economic development in remote areas of developing countries by analyzing nighttime light emissions across towns in Sub-Saharan Africa. Using a difference-in-differences approach, we exploit submarine cable arrivals, which established countrywide internet connections, and the rollout of the national backbones, which defines internet access within countries. Estimating on incidentally connected mid-sized towns, we find that early internet availability increases nighttime light intensity by 10 percent. We consider increased employment as the main explanation. Our findings highlight the importance of closing the digital divide for regional development.

Keywords: ICT; economic development nighttime lights; Sub-Saharan Africa; cybercafé; internet access; employment; submarine cables (search for similar items in EconPapers)
JEL-codes: L96 O18 R11 (search for similar items in EconPapers)
Date: 2024
New Economics Papers: this item is included in nep-afr, nep-dev, nep-ict and nep-ure
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