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Digital Infrastructure and Local Economic Development: Early Internet in Sub-Saharan Africa

Author

Listed:
  • Valentin Lindlacher

    (TUD Dresden University of Technology)

  • Moritz Goldbeck

    (ifo Institute)

Abstract

We investigate the impact of early internet availability at basic speeds on local economic development in remote areas of developing countries by analyzing nighttime light emissions across towns in Sub-Saharan Africa. Using a difference-in-differences approach, we exploit submarine cable arrivals, which established countrywide internet connections, and the rollout of the national backbones, which defines internet access within countries. Estimating on incidentally connected mid-sized towns, we find that early internet availability increases nighttime light intensity by 10 percent. We consider increased employment as the main explanation. Our findings highlight the importance of closing the digital divide for regional development.

Suggested Citation

  • Valentin Lindlacher & Moritz Goldbeck, 2025. "Digital Infrastructure and Local Economic Development: Early Internet in Sub-Saharan Africa," ERSA Working Paper Series 217, Economic Research Southern Africa.
    • Handle: RePEc:rza:ersawp:217
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    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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