The Impact of Access to Information and Communication Technology on Household Income in Afghanistan (2016-2019)

Abstract

This study investigates the relationship between access to information and communication technologies (ICT) and household income in Afghanistan. The traditional neoclassical growth theory is used to explain the role of technology on total labor and firm productivity. The investigator conducted a secondary data analysis A Survey of the Afghan People from 2016-2019, obtained from the Asia Foundation dataset. Two econometric models: static and dynamic were applied with Fixed Effect and system of GMM Arellano-Bover estimation techniques to examine the impact of ICT on household income. Results of both estimations demonstrate that access to ICTs positively contributes to household income. Further, the highest significant effect was associated with access to the Internet. The result suggests that inequality in access to ICT is a valid concern in social stratification. Therefore, the study recommends government interventions in developing policies to enhance people’s access to ICT. Since the price and quality of ICT play a critical role in people’s use of ICT services, the study recommends more public investment in ICT supply, especially in remote areas.