We investigate the impact of low-speed internet availability on local economic development in remote areas of developing countries by analyzing nighttime light emissions across towns in Sub-Saharan Africa. Using a difference-in-differences approach, we exploit submarine cable arrivals, which established countrywide internet connection, and use the rollout of national fiber cables to identify incidentally connected towns with early internet access. We find that internet availability increases nighttime light intensity by 10 percent. We consider increased employment, particularly in low-skilled jobs and for women, as the main explanation. Our findings highlight the importance of closing the digital divide for remote towns.
This study investigates the economic impact of China’s “stadium diplomacy” in Sub-Saharan Africa. Exploiting the staggered timing of the construction in a difference-in-differences framework, we analyze the effect of Chinese-built and financed stadiums on local economic development. Employing nighttime light satellite data, we provide both an aggregate and spatially disaggregated assessment of these investments. We find that a stadium's city nighttime light intensity increases by about 24 percent, on average, after stadium completion. The effects can be attributed to the stadiums but are not only visible close to the stadium's location. Estimates on nighttime light activity are mirrored by individual-level employment effects in the stadiums’ surrounding area. For stadiums not built or financed by China, we cannot find similar effects. Our results contrast with the widely held notion that China’s development finance projects constitute “white elephants”.