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Use of ICTs and the Economic Performance of SMEs in East Africa

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  • Shyamal Chowdhury

    (International Food Policy Research Institute IFPRI)

  • Susanna Wolf

    (ZEF, Bonn University)

Abstract

This paper assesses the use of information and communication technologies (ICTs) and their impact on the economic performance of small- and medium-scale enterprises (SMEs) of three East African countries: Kenya, Tanzania and Uganda. Findings of the paper suggest that the diffusion of ICT among East African SMEs is both industry and country specific. The empirical findings suggest that investment in ICT has a negative impact on labour productivity and a positive impact on general market expansion. However, such investment does not have any significant impact on enterprises’ return, nor does it determine enterprises exporter (non-exporter) status.

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Bibliographic Info

Paper provided by EconWPA in its series Microeconomics with number 0408004.

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Date of creation: 27 Aug 2004
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Handle: RePEc:wpa:wuwpmi:0408004

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Web page: http://128.118.178.162

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Keywords: information and communication technology; small and medium enterprises; firm performance; market expansion; East Africa;

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  8. David Lucking-Reiley & Daniel F. Spulber, 2001. "Business-to-Business Electronic Commerce," Journal of Economic Perspectives, American Economic Association, vol. 15(1), pages 55-68, Winter.
  9. Kevin J. Stiroh & Dale W. Jorgenson, 1999. "Information Technology and Growth," American Economic Review, American Economic Association, vol. 89(2), pages 109-115, May.
  10. Liedholm, Carl & Mead, Donald C., 1987. "Small Scale Industries in Developing Countries: Empirical Evidence and Policy Implications," Food Security International Development Papers 54062, Michigan State University, Department of Agricultural, Food, and Resource Economics.
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