The Impact of Digital Infrastructure on African Development

This paper estimates the impact of digital infrastructure on economic growth and its sources. The analysis uses system generalized method of moments and finds evidence of a causal impact from the digital infrastructure variables to economic growth,...

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Main Authors: Calderon, Cesar, Cantu, Catalina
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2021
Subjects:
Online Access:http://documents.worldbank.org/curated/undefined/382651637242152978/The-Impact-of-Digital-Infrastructure-on-African-Development
http://hdl.handle.net/10986/36629
id okr-10986-36629
recordtype oai_dc
spelling okr-10986-366292021-12-03T05:10:38Z The Impact of Digital Infrastructure on African Development Calderon, Cesar Cantu, Catalina DIGITAL ECONOMY GROWTH DRIVERS ECONOMIC GROWTH DIGITAL INFRASTRUCTURE This paper estimates the impact of digital infrastructure on economic growth and its sources. The analysis uses system generalized method of moments and finds evidence of a causal impact from the digital infrastructure variables to economic growth, its sources, income inequality, and poverty. The findings show that mobile connections have an impact on economic growth through the total factor productivity growth channel, while internet users drive it by the capital accumulation channel. Connections have a negative effect on the Gini coefficient, and internet users have a negative effect on the poverty headcount. The analysis also finds that human capital and access to electricity are important complementarities for digital infrastructure to reap benefits. There would be large economic gains if Africa were to close the digital infrastructure gap relative to other regions, yet there are some issues of affordability and skills that need to be addressed to reduce the usage gap and the digital divide across gender, rural-urban, and firm size. 2021-12-02T20:20:25Z 2021-12-02T20:20:25Z 2021-11 Working Paper http://documents.worldbank.org/curated/undefined/382651637242152978/The-Impact-of-Digital-Infrastructure-on-African-Development http://hdl.handle.net/10986/36629 English Policy Research Working Paper;No. 9853 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Africa Sub-Saharan Africa
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic DIGITAL ECONOMY
GROWTH DRIVERS
ECONOMIC GROWTH
DIGITAL INFRASTRUCTURE
spellingShingle DIGITAL ECONOMY
GROWTH DRIVERS
ECONOMIC GROWTH
DIGITAL INFRASTRUCTURE
Calderon, Cesar
Cantu, Catalina
The Impact of Digital Infrastructure on African Development
geographic_facet Africa
Sub-Saharan Africa
relation Policy Research Working Paper;No. 9853
description This paper estimates the impact of digital infrastructure on economic growth and its sources. The analysis uses system generalized method of moments and finds evidence of a causal impact from the digital infrastructure variables to economic growth, its sources, income inequality, and poverty. The findings show that mobile connections have an impact on economic growth through the total factor productivity growth channel, while internet users drive it by the capital accumulation channel. Connections have a negative effect on the Gini coefficient, and internet users have a negative effect on the poverty headcount. The analysis also finds that human capital and access to electricity are important complementarities for digital infrastructure to reap benefits. There would be large economic gains if Africa were to close the digital infrastructure gap relative to other regions, yet there are some issues of affordability and skills that need to be addressed to reduce the usage gap and the digital divide across gender, rural-urban, and firm size.
format Working Paper
author Calderon, Cesar
Cantu, Catalina
author_facet Calderon, Cesar
Cantu, Catalina
author_sort Calderon, Cesar
title The Impact of Digital Infrastructure on African Development
title_short The Impact of Digital Infrastructure on African Development
title_full The Impact of Digital Infrastructure on African Development
title_fullStr The Impact of Digital Infrastructure on African Development
title_full_unstemmed The Impact of Digital Infrastructure on African Development
title_sort impact of digital infrastructure on african development
publisher World Bank, Washington, DC
publishDate 2021
url http://documents.worldbank.org/curated/undefined/382651637242152978/The-Impact-of-Digital-Infrastructure-on-African-Development
http://hdl.handle.net/10986/36629
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