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

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Author Info
Shyamal Chowdhury (International Food Policy Research Institute IFPRI)
Susanna Wolf (ZEF, Bonn University)

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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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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://129.3.20.41

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

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Find related papers by JEL classification:
D2 - Microeconomics - - Production and Organizations
D8 - Microeconomics - - Information, Knowledge, and Uncertainty
O3 - Economic Development, Technological Change, and Growth - - Technological Change

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  2. repec:ags:midafs:11457 is not listed on IDEAS
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    Other versions:
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    Other versions:
  6. Erik Brynjolfsson & Lorin M. Hitt, 2000. "Beyond Computation: Information Technology, Organizational Transformation and Business Performance," Journal of Economic Perspectives, American Economic Association, vol. 14(4), pages 23-48, Fall. [Downloadable!] (restricted)
  7. Berndt, Ernst R. & Morrison, Catherine J., 1995. "High-tech capital formation and economic performance in U.S. manufacturing industries An exploratory analysis," Journal of Econometrics, Elsevier, vol. 65(1), pages 9-43, January. [Downloadable!] (restricted)
    Other versions:
  8. Daniels, Lisa & Mead, Donald C, 1998. "The Contribution of Small Enterprises to Household and National Income in Kenya," Economic Development and Cultural Change, University of Chicago Press, vol. 47(1), pages 45-71, October.
  9. Carl Liedholm & Donald Mead, 1987. "Small Scale Industries in Developing Countries: Empirical Evidence and Policy Implications," International Development Papers 9, Department of Agricultural Economics, Michigan State University. [Downloadable!]
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  11. M. Söderbaum & F. Teal, 2000. "Skills, Investment and Exports from Manufacturing Firms in Africa," The Journal of Development Studies, Taylor and Francis Journals, vol. 37(2), pages 13-43, December. [Downloadable!] (restricted)
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