| By: |
Moritz Goldbeck;
Valentin Lindlacher |
| 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 |
| JEL: |
O18 R11 L96 |
| Date: |
2024 |
| URL: |
https://d.repec.org/n?u=RePEc:ces:ceswps:_11308 |