DIGITAL DIVIDE: THE IMPACT OF UNEQUAL ICT INFRASTRUCTURAL QUALITY ON ECONOMICS STUDENT LEARNING OUTCOMES AND ITS IMPLICATIONS FOR RESOURCE ALLOCATION IN PUBLIC EDUCATION SYSTEM

Abstract

This study investigates the causal relationship between the quality of Information and Communication Technology (ICT) infrastructure in public schools and Economics students’ academic achievement, while examining how existing funding mechanisms perpetuate regional inequities. Despite global efforts to expand digital access in education following the COVID-19 pandemic, significant disparities persist—not only in access but, crucially, in the quality and reliability of ICT resources such as high-speed broadband, modern devices, and technical support. Leveraging a unique, nationally representative panel dataset from different countries, the analysis reveals that beyond mere access, higher-quality ICT infrastructure significantly predicts improved student learning outcomes in economics, mathematics, and science, with effects being substantially larger for disadvantaged students and those in rural areas. However, the study finds that current per-student funding formulas inadequately account for the higher costs of establishing and maintaining high-quality ICT infrastructure in underserved regions, worsening resource misallocation and widening the digital divide. Counterfactual simulations demonstrate that reallocating resources based on a cost-adjusted quality index could significantly reduce outcome disparities without increasing overall expenditure. The findings challenge simplistic “access-only” policies and offer empirical evidence for policymakers seeking more equitable and efficient digital investment strategies. The study emphasizes the need for sustainable funding models and attention to qualitative dimensions of ICT infrastructure in public education.