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

Valentin Lindlacher () and Moritz Goldbeck
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Valentin Lindlacher: TUD Dresden University of Technology
Authors registered in the RePEc Author Service: Nicola Viegi

No 217, ERSA Working Paper Series from Economic Research Southern Africa

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: 2025-09
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Citations: View citations in EconPapers (1)

Published in ERSA Working Paper Series, September 2025

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Related works:
Working Paper: Digital Infrastructure and Local Economic Development: Early Internet in Sub-Saharan Africa (2024)
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Persistent link: https://EconPapers.repec.org/RePEc:rza:ersawp:217

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