The economic impact of internet connectivity in developing countries

Jonas Hjort and Lin Tian

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: Firms, workers, and consumers in developing countries are increasingly connected to each other and to the rest of the world through the internet. Can this connectivity transform poor economies, as technology optimists hope, or are there more deeply rooted barriers to economic development? Research on the topic is growing rapidly. In this article we provide an overview of existing evidence from 153 studies on the extent to which, and how, internet connectivity affects economic development. Not surprisingly, estimates vary widely with the context, particular outcome, and form of internet studied. Overall, the literature points toward sizable economic impacts in many—though not all—settings.

Keywords: internet connectivity; economic development; productivity (search for similar items in EconPapers)
JEL-codes: J20 O10 O30 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2025-08-06
New Economics Papers: this item is included in nep-ict
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Published in Annual Review of Economics, 6, August, 2025, 17(1), pp. 99 - 124. ISSN: 1941-1383

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