The economic impact of internet connectivity in developing countries

Hjort, Jonas and Tian, Lin (2025) The economic impact of internet connectivity in developing countries. Annual Review of Economics, 17 (1). 99 - 124. ISSN 1941-1383

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Abstract

Firms, workers, and consumers in developing countries are increasingly connected to each other and to the rest of the world through the internet. Can this connectivity transform poor economies, as technology optimists hope, or are there more deeply rooted barriers to economic development? Research on the topic is growing rapidly. In this article we provide an overview of existing evidence from 153 studies on the extent to which, and how, internet connectivity affects economic development. Not surprisingly, estimates vary widely with the context, particular outcome, and form of internet studied. Overall, the literature points toward sizable economic impacts in many—though not all—settings.

Item Type:	Article
Additional Information:	© 2025 by the author(s)
Divisions:	LSE
Subjects:	H Social Sciences > HE Transportation and Communications H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HC Economic History and Conditions
JEL classification:	J - Labor and Demographic Economics > J2 - Time Allocation, Work Behavior, and Employment Determination and Creation; Human Capital; Retirement > J20 - General O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O10 - General O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development > O30 - General
Date Deposited:	18 Aug 2025 10:57
Last Modified:	20 Aug 2025 16:51
URI:	http://eprints.lse.ac.uk/id/eprint/129143

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