Impact of Connectivity on Economic Outcomes
Scope
Team
Overview
The project investigates the impact of connectivity on the presence and activity of physical markets and, consequently, economic activity in remote areas of low- and middle-income countries, using satellite imagery. While previous research has explored the effects of connectivity on online trade, measuring the effects on offline economic activity, especially in rural developing areas, has been challenging. Policymakers, governments, and other stakeholders involved in connectivity can leverage the insights from this research project to improve strategies for prioritizing connectivity expansion in rural regions of developing countries.
Background
Previous research has found significant relationships between internet connectivity and productivity, sales, and employment in developing countries. Prior findings on how internet connectivity may facilitate access to new markets and increase online sales and e-commerce have provided invaluable insights into the relationship between connectivity and e-commerce. However, there is a lack of evidence on the effect of internet connectivity on the presence and activity of physical markets in rural communities.
Research Questions
How do internet connectivity and accessibility affect the presence and activity of physical marketplaces, and consequently economic activity, in rural communities in developing countries?
Preliminary insights
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Building density is a significant predictor of school internet connectivity in Rwanda, yet infrastructure availability alone is not sufficient to ensure school connectivity.
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School connectivity depends on surrounding built-environment conditions rather than schools’ internal attributes alone.
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Investments in school connectivity infrastructure may yield benefits for local market development, warranting longitudinal analyses to further clarify the socioeconomic outcomes of connectivity.
Key statistics
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The transition from low to high mobile internet penetration in Rwanda increased employment by 11 percentage points.
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Despite being within the coverage range of 3G or 4G towers, 15.8% of schools in Rwanda remain unconnected.