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<p>This study examines the relationship between Information and Communication Technologies (ICT) and employment dynamics in Tanzania, a developing economy experiencing rapid digital adoption alongside persistent unemployment. Using annual data from 1994 to 2023 and an Autoregressive Distributed Lag (ARDL) framework, the analysis evaluates both short-run and long-run associations between ICT adoption and employment at the aggregate level and across manufacturing and service sectors. ICT is measured using internet usage, mobile phone subscriptions, and fixed telephone subscriptions, alongside key macroeconomic controls. The results indicate a stable long-run relationship between ICT adoption and employment, with heterogeneous effects across sectors and technologies. Internet usage is more strongly associated with employment growth in the service sector, while manufacturing employment exhibits distinct adjustment dynamics. By explicitly distinguishing between sectoral and temporal employment responses, the study contributes to clarifying how ICT diffusion interacts with labour demand in labour-abundant developing economies, offering policy-relevant insights beyond purely geographic extensions of the existing literature.</p>

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The role of information and communication technologies in shaping employment dynamics: insights from Tanzania

  • 期刊论文

  • 发表日期：

    2026年4月2日

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  • Godwin Myovella,
  • Mugure Wambura

摘要

This study examines the relationship between Information and Communication Technologies (ICT) and employment dynamics in Tanzania, a developing economy experiencing rapid digital adoption alongside persistent unemployment. Using annual data from 1994 to 2023 and an Autoregressive Distributed Lag (ARDL) framework, the analysis evaluates both short-run and long-run associations between ICT adoption and employment at the aggregate level and across manufacturing and service sectors. ICT is measured using internet usage, mobile phone subscriptions, and fixed telephone subscriptions, alongside key macroeconomic controls. The results indicate a stable long-run relationship between ICT adoption and employment, with heterogeneous effects across sectors and technologies. Internet usage is more strongly associated with employment growth in the service sector, while manufacturing employment exhibits distinct adjustment dynamics. By explicitly distinguishing between sectoral and temporal employment responses, the study contributes to clarifying how ICT diffusion interacts with labour demand in labour-abundant developing economies, offering policy-relevant insights beyond purely geographic extensions of the existing literature.