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

Author

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  • Shyamal Chowdhury

    (International Food Policy Research Institute IFPRI)

  • Susanna Wolf

    (ZEF, Bonn University)

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.

Suggested Citation

  • Shyamal Chowdhury & Susanna Wolf, 2004. "Use of ICTs and the Economic Performance of SMEs in East Africa," Microeconomics 0408004, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpmi:0408004
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    References listed on IDEAS

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    Cited by:

    1. Ibrahim Mike Okumu & Faisal Buyinza, 2018. "Labour productivity among small- and medium-scale enterprises in Uganda: the role of innovation," Journal of Innovation and Entrepreneurship, Springer, vol. 7(1), pages 1-17, December.
    2. Joel Cariolle & Maëlan Le Goff & Olivier Santoni, 2017. "Telecommunications submarine cable vulnerability and local performance of firms in developing and transition countries," Post-Print hal-01569846, HAL.
    3. Joël Cariolle & Maelan Le Goff & Olicier Santoni, 2019. "Digital vulnerability and performance of firms in developing countries," Working papers 709, Banque de France.
    4. Cyprian Amutabi & Anthony Wambugu, 2020. "Determinants of labor productivity among SMEs and large‐sized private service firms in Kenya," African Development Review, African Development Bank, vol. 32(4), pages 591-604, December.
    5. Ibrahim Mike Okumu & Faisal Buyinza, 2020. "Performance of Small and Medium-sized Enterprises in Uganda: the Role of Innovation," Working Papers 363, African Economic Research Consortium, Research Department.
    6. Joel Cariolle & Maëlan Le Goff & Olivier Santoni, 2018. "Broadband infrastructure deployment, digital vulnerability, and local firm performance in developing and transition countries," Post-Print hal-01758660, HAL.
    7. Ferris, Jeffrey S. & Newburn, David A., 2017. "Wireless alerts for extreme weather and the impact on hazard mitigating behavior," Journal of Environmental Economics and Management, Elsevier, vol. 82(C), pages 239-255.
    8. Mona Farid Badran, PhD, 2014. "Access and use of ICT in female-owned SMEs in selected Arab Countries and Brazil: A comparative study," Working Papers 2014/12, Maastricht School of Management.

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    More about this item

    Keywords

    information and communication technology; small and medium enterprises; firm performance; market expansion; East Africa;
    All these keywords.

    JEL classification:

    • D2 - Microeconomics - - Production and Organizations
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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