Conference Paper
Access and Use of Digital Technologies and Firm Performance: Evidence from a Firm-Level Survey in Egypt
No.
ERF_31_MIC78
Publisher
ERF
Date
March, 2025
Topic
D. Microeconomics
This study assesses the effects of static and dynamic access, and use of digital technologies on firms' performance. It further examines intra-firm level differences in the effect of access and use of digital technologies with particular focus on firms’ size, foreign market participation and intra-sectoral competition. Instrumental variable (IV) estimation techniques and marginal treatment effect (MTE) estimates were used to analyze data from 806 firms. The results suggest that both access and use of digital technologies have statistically significant and positive effects on firms’ performance. However, dynamic usage—measured by the years a firm has utilized digital technologies—has a comparatively greater effect than static access and usage. The effect is particularly pronounced for micro-sized firms, as well as those operating in domestic markets with lower levels of sectoral competition. These results are robust across various estimation techniques and indicators of firms’ performance. These results underscore the need for the Egyptian government to implement targeted digitalization policies that support smaller-sized and vulnerable firms. Such policies should focus on factors such as cost, service quality, and regulatory barriers that hinder access and effective use of digital technologies by these firms.
Authors
Emmanuel Orkoh
Postdoctoral Researcher, Nordic Africa Institute, Uppsala University
Research Fellows
Assem Abu Hatab
Professor and a Senior Development Economist, Nordic...