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What are the effects of ICT on structural transformation in sub-Saharan Africa?

Author

Listed:
  • Fabrice Nzepang

    (Cameroon Economics Society (CES))

  • Saturnin Bertrand Nguenda Anya

    (Research Center on Innovation, Institutions and Inclusive Development (RCIIID))

  • Cosmas Bernard Meka'a

    (University of Douala)

Abstract

This paper evaluate the effects of ICT on the structural transformation of sub-Saharan economies. Data generated by the Varieties of Democracy, the WDI and Mensah and Szirmai (2018) allowed us to verify our findings on a panel of 18 SSA economies using VAR modelling. The main findings show that the number of internet users has no effect on structural change or intra-industry productivity in the short term, and this delay can be attributed to the time required to learn and master new ICT tools. However, the impacts of the shock in the number of Internet users on structural change persist over time. This implies that the more Internet connectivity there is, the more resources are transferred to the most productive sectors of SSA economies. a shock to GDP has an immediate and negative effect on structural change in SSA, but a favorable effect on the number of mobile phone subscribers. However, the shock's negative influence on structural change decreases in the first year, then reverses and returns to equilibrium by the third year. The outcome can be explained when the shock to economic growth is not structural, but rather results from new exploitation of natural resources or new debt, which can move resources to less productive sectors. The results suggest a growing adoption of the internet in private and public administrations and enterprises to promote structural transformation of economies.

Suggested Citation

  • Fabrice Nzepang & Saturnin Bertrand Nguenda Anya & Cosmas Bernard Meka'a, 2024. "What are the effects of ICT on structural transformation in sub-Saharan Africa?," Economics Bulletin, AccessEcon, vol. 44(3), pages 747-770.
    • Handle: RePEc:ebl:ecbull:eb-23-00071
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    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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