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The Impact of Digital Infrastructure on African Development

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  • Calderon,Cesar
  • Cantu,Catalina

Abstract

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 digitalinfrastructure variables to economic growth, its sources, income inequality, and poverty. The findings show thatmobile connections have an impact on economic growth through the total factor productivity growth channel, while internetusers 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 andaccess to electricity are important complementarities for digital infrastructure to reap benefits. There would belarge economic gains if Africa were to close the digital infrastructure gap relative to other regions, yet there aresome issues of affordability and skills that need to be addressed to reduce the usage gap and the digital divideacross gender, rural-urban, and firm size.

Suggested Citation

  • Calderon,Cesar & Cantu,Catalina, 2021. "The Impact of Digital Infrastructure on African Development," Policy Research Working Paper Series 9853, The World Bank.
    • Handle: RePEc:wbk:wbrwps:9853
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    References listed on IDEAS

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    Keywords

    Economic Growth; Industrial Economics; Economic Theory & Research; Inequality; Information Technology; Telecommunications Infrastructure;
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