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Investments in ICT-capital and economic performance of small and medium scale enterprises in East Africa


  • Shyamal K. Chowdhury

    (International Food Policy Research (IFPRI) and Susanna Wolf Economic Commission for Africa (ECA), Addis Ababa, Ethiopia)


In this paper, we focused on whether investments in ICTs could cause any increases in a firm's performance. We constructed a data set for two East African countries-Kenya and Tanzania for small and medium scale enterprises and focused on three performance indicators-internal rate of return, labour productivity and domestic and export market expansion. Findings of this paper suggested that investments in ICT have a positive impact on general market expansion. However, it has a negative impact on labour productivity, and such investment does not have any significant impact on the firm's return nor does it determine the firm's exporter (non-exporter) status. Copyright © 2006 John Wiley & Sons, Ltd.

Suggested Citation

  • Shyamal K. Chowdhury, 2006. "Investments in ICT-capital and economic performance of small and medium scale enterprises in East Africa," Journal of International Development, John Wiley & Sons, Ltd., vol. 18(4), pages 533-552.
  • Handle: RePEc:wly:jintdv:v:18:y:2006:i:4:p:533-552 DOI: 10.1002/jid.1250

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    References listed on IDEAS

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    1. repec:spr:jglont:v:7:y:2017:i:1:d:10.1186_s40497-017-0063-5 is not listed on IDEAS
    2. Akter, Shaheen & Fu, Xiaolan, 2012. "Impact of Mobile Telephone on the Quality and Speed of Agricultural Extension Services Delivery: Evidence from the Rural India," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126798, International Association of Agricultural Economists.
    3. Kangni R Kpodar & Mihasonirina Andrianaivo, 2011. "ICT, Financial Inclusion, and Growth; Evidence from African Countries," IMF Working Papers 11/73, International Monetary Fund.
    4. Jean-Michel HUET & Isabelle VIENNOIS & Pierre LABARTHE & Anas EL BARKANI, 2012. "Impact Study of the Arrival of a New Mobile Phone Operator in Haiti," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(86), pages 175-192, 2nd quart.
    5. Navyashree G. R. & Savita Bhat, 2016. "ICT Investments and Growth of Small and Medium Firms: A Study of Food Processing Industry in India," Working Papers id:11306, eSocialSciences.

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