THE IMPACT OF DIGITAL TECHNOLOGY ON HOUSEHOLD ECONOMIC STATUS IN DEVELOPING COUNTRIES. A CASE STUDY OF NIGERIA.

Abstract: Over the past few decades, mobile and wireless technologies have been evolving rapidly which has influenced household income, wealth, and consumption levels, especially in developing countries. Specifically, this paper estimates the impact of digital technology on household economic status in Nigeria, the largest economy and mobile market in Africa. The analysis exploits a unique data set in 2018 from a nationally representative longitudinal household survey on living standards, with information on their usage and access to specific digital technologies. In performing this analysis, multiple linear regression analysis and state-fixed effects estimates were employed. The Variance Inflation Factor was also used to test for multicollinearity and a heterogeneity analysis was conducted to examine the interaction effects among the variables. The results show that an increase in internet usage and mobile phone ownership in households can positively influence and increase household wealth. The study recommends that digital literacy should be promoted to maximize the benefits of mobile phone ownership and internet infrastructures should be expanded in rural areas to bridge the urban-rural gap. In addition, governments should collaborate to encourage mobile banking to increase financial inclusion.