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on Information and Communication Technologies |
| By: | Hjort, Jonas; Tian, Lin |
| 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 |
| JEL: | J20 O10 O30 |
| Date: | 2025–08–06 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:129143 |
| By: | Georges V. Houngbonon; Marc Ivaldi; Emil Palikot; Davide Strusani |
| Abstract: | Nearly half the world remains offline, and capital scarcity stalls new network buildouts. Sharing existing mobile towers could accelerate connectivity. We assemble data on 107 tower-sharing deals in 28 low-income countries (2008-20) and estimate staggered difference-in-differences effects. Two years after a transaction covering over 1, 000 towers, the PPP-adjusted mobile-price index falls USD 1.60 (s.e. 1.10) from a baseline of USD 3.16, while data prices drop USD 1.00 (0.29), baseline USD 3.41 per GB. The number of mobile connections increases. Rural internet access increases by 4.7 pp and female-headed households by 3.6 pp. Tower-sharing agreements increase product market competition as measured by Herfindahl-Hirschman Index. |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2507.19693 |
| By: | Venkat Ram Reddy Ganuthula; Ramesh Kuruva |
| Abstract: | This study explores the structural and performance impacts of artificial intelligence (AI) adoption on Indias knowledge intensive startups, spanning information technology, financial technology, health technology, and educational technology, founded between 2016 and 2025. Using a natural experiment framework with the founding year as an exogenous treatment proxy, it examines firm size, revenue productivity, valuation efficiency, and capital utilization across pre AI and AI era cohorts. Findings reveal larger structures and lower efficiency in AI era firms, supported by a dataset of 914 cleaned firms. The study offers insights into AIs transformative role, suggesting that while AI era firms attract higher funding and achieve higher absolute valuations, their per employee productivity and efficiency ratios are lower, potentially indicating earlystage investments in technology that have yet to yield proportional returns. This informs global entrepreneurial strategies while highlighting the need for longitudinal research on sustainability. |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2507.19775 |
| By: | Kuusi, Tero |
| Abstract: | Abstract This paper analyzes the macroeconomic impact of Generative Artificial Intelligence (GenAI) on the Finnish economy, integrating recent literature and empirical evidence into a quantitative multi-sector general equilibrium model. The results indicate that, over a ten-year horizon, GenAI adoption increases annual economic growth by less than 0.5 percentage points in the baseline scenarios, with the potential for larger impacts—exceeding 1 percentage point—under scenarios involving greater automation and shifts in labor and ICT factor shares. The model’s input-output structure reveals significant multiplier effects, as productivity gains in one sector propagate to others. The service sector emerges as a pivotal driver of adjustment, with its adaptability helping to offset slower growth in sectors less amenable to automation. The study acknowledges uncertainties regarding the broader impacts of artificial general intelligence, emphasizing the limitations of current forecasts, adaptation frictions, and the importance of anticipatory behavior in financial markets. Overall, the findings underscore the transformative potential of GenAI, contingent upon proactive policy measures to foster economic growth. |
| Keywords: | Artificial Intelligence, Productivity, Technology adoption |
| JEL: | C6 E1 O3 O4 O5 |
| Date: | 2025–08–14 |
| URL: | https://d.repec.org/n?u=RePEc:rif:wpaper:131 |
| By: | Makoza, Frank |
| Abstract: | Digital transformation has attracted attention of Government of Malawi and development partners in supporting the development of inclusive digital economy and society. However, studies on the landscape of digital transformation to establish the level of maturity of Malawi are still lacking. This paper explored the current state of inclusive digital transformation using the UNDP Digital Transformation Framework. The study analysed secondary data from gov-ernment departments and international development online databases using content analysis. The findings showed that the country was improving in pillars for digital public infrastructure, regulation of technologies and government role in leading technology developments despite not having a coordinated strategy. There were challenges in dealing with the pillars for econo-my (e.g. financial services and innovation ecosystem), connectivity (e.g. physical infrastructure) and people (e.g. low usage and adoption due to high cost of devices and low digital skills). The study offer useful insights into areas where implementation agencies, policymakers and development partners may concentrate on to achieve high maturity of digital transformation. |
| Keywords: | Digital transformation, Inclusion, Digitalization, Digital technology, Malawi |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:esprep:324136 |
| By: | Barone, Guglielmo (University of Bologna); Loviglio, Annalisa (University of Bologna); Tommasi, Denni (University of Bologna) |
| Abstract: | Digital skills are increasingly essential for full participation in modern life. Yet many low-income families face a dual digital divide: limited access to technology and limited ability to use it effectively. These gaps can undermine adults' ability to support their children's education, restrict access to public services, and reduce their own employability. Despite growing policy attention, rigorous evidence on how to close these gaps—especially among disadvantaged adults in high-income countries—remains scarce. We evaluate the impact of a comprehensive digital inclusion program in Turin, Italy, targeting 859 low-income families with school-aged children. Participants were randomly assigned to a control group or one of two treatment arms, each combining a free tablet with internet access and digital literacy training of different durations. One year later, treated participants reported large improvements in daily technology use and digital skills, as measured by the "Digital Skills Indicator 2.0" (DSI) developed by Eurostat. Parents also became more confident in guiding their children's online activities, more engaged in digital parenting, and more likely to access public services digitally. We find no effects on employment or job search behavior, but treated participants expressed greater optimism about future training prospects. The effects are statistically similar across the two training intensities, suggesting that (i) once basic barriers are removed, digital engagement can become self-sustaining, and/or (ii) that the returns to digital training are strongly diminishing. Mediation analysis confirms that digital skills — not just access — are key drivers of broader behavioral and economic outcomes. Sequential effects are particularly strong in the domains of social inclusion and parenting. The findings underscore the importance of addressing both financial and learning constraints and suggest that bundled interventions can foster inclusive digital participation. |
| Keywords: | digital divide, digital literacy, low-income families, labor market outcomes, digital parenting |
| JEL: | I24 J24 O33 C93 |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp18032 |