ICT Adoption and Income Dynamics: Evidence from Rural Households in Pakistan

Abstract

Aim of study: This research focuses on the effects of the adoption of the Information and Communication Technology (ICT) on the agricultural productivity and farm, non-farm and total income among the rural population in Pakistan.

Methodology: The study uses Ordinary Least Squares (OLS) and Probit regression to assess both the effects of ICT tools in the economy and the socioeconomic determinants influencing their adoption using nationally representative data of the Household Integrated Economic Survey (HIES) 20182019.

Findings: The results also indicate that mobile phone usage, internet and digital agricultural applications have a significant impact on increasing household income and diversification of income of the farms. Adopting ICT devices helps farmers to have better access to market information, enhanced resource allocation, as well as reduced transactions costs. Findings further suggest that education, gender and household size are important determinants in the levels of ICT adoption.

Conclusion: This paper concludes that inclusive rural development can be fueled by ICT through enhancing efficiency and decision-making capabilities in the market. Thus, to reinforce agricultural performance and sustainable economic growth in Pakistan, it is necessary to implement policies that will enhance digital literacy and rural broad banding and gender-sensitive ICT policies.