Digital accessibility and poverty reduction : global perspectives

This study investigates the poverty reduction gains that are associated with access to digital technologies by using panel data based on 113 countries from 2000 to 2022. We address crosssectional and temporal dependency with the Driscoll-Kraay technique, and endogeneity with the Lewbel two-stage least squares technique. The results indicate that the digital technology access index-comprising broadband, telephone, mobile, and internet access-contributes to poverty reduction, with the effect being persistent. Except for mobile phone usage, the rest of the digital technology proxies do not follow the critical mass hypothesis. Mediation analysis indicates that access to digital technologies contributes to poverty reduction by working through increasing gross domestic product per capita; accessing finance, education, and employment; and reducing income inequality. The poverty reduction gains of digital technologies are evident in developing Asia, landlocked/island nations, coastal/non-island countries, and advanced economies, with broadband and internet access contributing to poverty reduction during the coronavirus disease (COVID-19) pandemic. Given the role of digital technologies in strengthening resilience, we call on policymakers to invest in and expand digital connectivity, particularly to vulnerable communities.