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The impact of digital technology usage on economic growth in Africa

The impact of digital technology usage on economic growth in Africa

Solomon, Edna Maeyen and van Klyton, Aaron (2020) The impact of digital technology usage on economic growth in Africa. Utilities Policy, 67:101104. ISSN 0957-1787 (doi:https://doi.org/10.1016/j.jup.2020.101104)

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Abstract

This study analyses the impact of the use of digital technology on economic growth for 39 African countries from 2012 to 2016. This analysis applies a system GMM estimator to understand the extent to which the usage of digital technology facilitates growth using a measure of digitalisation from the Networked Readiness Index. Unlike previous research, we distinguish between the impact of individual, business, and government ICT usage on growth and show that only individual usage has a positive impact. Furthermore, a disaggregated analysis of the types of usage reveals that two indicators, social media and the importance of ICTs to government vision, are significant for growth.

Item Type: Article
Additional Information: Highlights: • This paper examines the impact of the usage of digital technology on economic growth in 39 African countries from 2012 to 2016 using the system GMM estimator. • We utilise a measure of digitalisation derived from the Networked Readiness Index. • Unlike previous research, we distinguish between individual, business, and government ICT usage on growth and show that only individual usage has a positive impact. • We implement a disaggregated analysis of the types of usage to show that social media and the importance of ICTs to government vision are significantly related with economic growth. • Government policy that actively integrates ICT usage across business sectors and for individual use would enhance competitiveness.
Uncontrolled Keywords: digitalisation, digital technology usage, economic growth, Africa
Subjects: H Social Sciences > HB Economic Theory
Faculty / Department / Research Group: Faculty of Business
Faculty of Business > Department of International Business & Economics
Faculty of Business > Institute of Political Economy, Governance, Finance and Accountability (IPEGFA)
Faculty of Business > Institute of Political Economy, Governance, Finance and Accountability (IPEGFA) > Greenwich Political Economy Research Centre (GPERC)
Last Modified: 04 Aug 2021 16:33
Selected for GREAT 2016: None
Selected for GREAT 2017: None
Selected for GREAT 2018: None
Selected for GREAT 2019: None
Selected for REF2021: None
URI: http://gala.gre.ac.uk/id/eprint/29537

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