Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/305550 
Year of Publication: 
2024
Series/Report no.: 
CESifo Working Paper No. 11308
Publisher: 
CESifo GmbH, Munich
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.
Subjects: 
ICT
economic development nighttime lights
Sub-Saharan Africa
cybercafé
internet access
employment
submarine cables
JEL: 
O18
R11
L96
Document Type: 
Working Paper
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