The Economic Impact of Internet Connectivity in Developing Countries

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Jonas Hjort, Lin Tian

2025 Annual Review of Economics Vol. 17 Issue 1 Review Cited by 18 Quartile

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. Copyright © 2025 by the author(s).

Affiliations

Department of Economics, University College London, London, United Kingdom; Bureau for Research and Economic Analysis of Development (BREAD), London School of Economics, London, United Kingdom; Department of Economics, University of Oslo, Oslo, Norway; INSEAD, Singapore; Centre for Economic Policy Research, London, United Kingdom