The Impact of Internet Use on Income: The Case of Rural Ghana

• Main Authors: Anthony Siaw, Yuansheng Jiang, Martinson Ankrah Twumasi, Wonder Agbenyo
• Format: Article
• Language: English
• Published: MDPI AG 2020-04-01
• Series: Sustainability
• Subjects: internet use; income; endogenous switching regression; probit model; rural Ghana
• Online Access: https://www.mdpi.com/2071-1050/12/8/3255

This study analyzed the effects of internet use on farm income and household income using survey data from 478 rural farmers from two regions in Ghana. An endogenous switching regression (ESR) model and probit models were employed to achieve the aims of the study. The results revealed that internet use was influenced by off-farm employment, education, access to credit, non-fixed asset (NFA), age, and perception variables. We found that internet use increased farm income and household income by 20.1% and 15.47%, respectively. Regarding heterogeneous impacts, the estimates showed that internet use reduced farm income by 18.12% for farm households that participated in off-farm activities but increased farm income by 14.66% for households that had access to NFA. The estimates also indicated that internet use increased household income by 31.77% for farm households that engaged in off-farm employment and by 15.33% for those that had access to NFA. Furthermore, internet use increased the household income for households that did not engage in off-farm activities by 24.85%. The findings of this study will contribute significantly to the existing literature on information communication technology (ICT) in developing countries by providing a new reference for improving rural development and solving the problem of poverty.