Connected for Development? Theory and Evidence About the Impact of Internet Technologies on Poverty Alleviation

Abstract

Governments are investing heavily on Internet connectivity projects, based on the assumption that increased access to Internet services will accelerate economic growth and improve the wellbeing of the poor. This paper reviews the existing evidence about the impact of Internet diffusion on various development dimensions, and articulates the empirical evidence into a theoretical framework that seeks to conceptualize the microlinkages between Internet adoption and poverty alleviation. The findings suggest the need for more careful consideration of differentiated effects in the design and implementations of connectivity initiatives.

Keywords: internet access, poverty, impact evaluation, literature review

JEL Classification: O38, L96, I39