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

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.