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The Economic Impact of Internet Connectivity in Developing Countries

Author

Listed:
  • Jonas Hjort

    (Centre for Economic Policy Research, London, United Kingdom
    Bureau for Research and Economic Analysis of Development (BREAD), London School of Economics, London, United Kingdom
    Department of Economics, University of Oslo, Oslo, Norway
    Department of Economics, University College London, London, United Kingdom)

  • Lin Tian

    (INSEAD, Singapore
    Centre for Economic Policy Research, London, United Kingdom)

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.

Suggested Citation

  • Jonas Hjort & Lin Tian, 2025. "The Economic Impact of Internet Connectivity in Developing Countries," Annual Review of Economics, Annual Reviews, vol. 17(1), pages 99-124, August.
    • Handle: RePEc:anr:reveco:v:17:y:2025:p:99-124
    DOI: 10.1146/annurev-economics-081224-102352
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    Cited by:

    1. Shreya Biswas & Ritika Jain, 2026. "The Road to Safety - Examining the Nexus between Road Infrastructure and Crime in Rural India," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 24(1), pages 103-126, March.
    2. Ani Stoykova, 2026. "Digital Connectivity and Transformation in Southeast Europe: Comparative Insights from EU Member States," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 4, pages 58-73.

    More about this item

    Keywords

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    JEL classification:

    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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