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Technological Progress and Economic Growth in Sub-Saharan Africa: Evidence from Telecommunications Infrastructure

Author

Listed:
  • Ficawoyi Donou-Adonsou

    (University of Colorado Denver)

  • Sokchea Lim

    (John Carroll University)

  • Samuel A. Mathey

    (OnPoint Consulting Group CI)

Abstract

This paper investigates the impact of telecommunications infrastructure in Sub-Saharan Africa. We use the World Development Indicators database and apply the instrumental variable-generalized method of moments to a panel of 47 countries over the period 1993–2012. The results show that the Internet and mobile phones have contributed to economic growth. A one percentage point increase in Internet and mobile phone usage raises growth by 0.12 and 0.03 percentage points, respectively. Overall, the results suggest that the development of telecommunications infrastructure fosters economic growth in Sub-Saharan Africa. With much room for potential growth enhancement of telecommunications infrastructure, policies to expand access or reduce cost should be strongly encouraged by African governments, particularly as far as the Internet is concerned.

Suggested Citation

  • Ficawoyi Donou-Adonsou & Sokchea Lim & Samuel A. Mathey, 2016. "Technological Progress and Economic Growth in Sub-Saharan Africa: Evidence from Telecommunications Infrastructure," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 22(1), pages 65-75, February.
    • Handle: RePEc:kap:iaecre:v:22:y:2016:i:1:d:10.1007_s11294-015-9559-3
    DOI: 10.1007/s11294-015-9559-3
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    Cited by:

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    3. Mbondo, Georges Dieudonné & Bouwawe, Duclo, 2023. "Transformation digitale et transformation structurelle dans les économies d’Afrique Sub-Saharienne (ASS) : les effets variés des technologies de l’information et de la communication (TIC) [Digital ," MPRA Paper 117541, University Library of Munich, Germany.
    4. Alma Maciulyte-Sniukiene & Mindaugas Butkus, 2022. "Does Infrastructure Development Contribute to EU Countries’ Economic Growth?," Sustainability, MDPI, vol. 14(9), pages 1-40, May.
    5. Danish, & Khan, Salahuddin & Haneklaus, Nils, 2023. "Sustainable economic development across globe: The dynamics between technology, digital trade and economic performance," Technology in Society, Elsevier, vol. 72(C).
    6. Donou-Adonsou, Ficawoyi, 2019. "Technology, education, and economic growth in Sub-Saharan Africa," Telecommunications Policy, Elsevier, vol. 43(4), pages 353-360.
    7. Hampshire, Kate & Mwase-Vuma, Tawonga & Alemu, Kassahun & Abane, Albert & Munthali, Alister & Awoke, Tadesse & Mariwah, Simon & Chamdimba, Elita & Owusu, Samuel Asiedu & Robson, Elsbeth & Castelli, Mi, 2021. "Informal mhealth at scale in Africa: Opportunities and challenges," World Development, Elsevier, vol. 140(C).
    8. Jiaping Zhang & Mingwang Cheng & Xinyu Wei & Xiaomei Gong, 2018. "Does Mobile Phone Penetration Affect Divorce Rate? Evidence from China," Sustainability, MDPI, vol. 10(10), pages 1-19, October.
    9. Matthess, Marcel & Kunkel, Stefanie, 2020. "Structural change and digitalization in developing countries: Conceptually linking the two transformations," Technology in Society, Elsevier, vol. 63(C).
    10. Haftu, Girmay Giday, 2019. "Information communications technology and economic growth in Sub-Saharan Africa: A panel data approach," Telecommunications Policy, Elsevier, vol. 43(1), pages 88-99.
    11. Bessan Ayédoun, Eudoxie & Ayédoun, Christian, 2020. "Développement des Infrastructures de Télécommunication et Croissance Economique dans les Pays de l’UEMOA: une Analyse de la Causalité sur Données de Panel à partir d’un VECM [Telecommunication Infr," MPRA Paper 104459, University Library of Munich, Germany, revised 01 Feb 2021.
    12. Schoentgen, Aude & Gille, Laurent, 2017. "Valuation of telecom investments in sub-Saharan Africa," Telecommunications Policy, Elsevier, vol. 41(7), pages 537-554.
    13. Habibi, Fateh & Zabardast, Mohamad Amjad, 2020. "Digitalization, education and economic growth: A comparative analysis of Middle East and OECD countries," Technology in Society, Elsevier, vol. 63(C).
    14. Adekoya, Oluwasegun B. & Yaya, OlaOluwa S. & Oliyide, Johnson A. & Posu, Sunday M.A., 2022. "Growth and growth disparities in Africa: Are differences in renewable energy use, technological advancement, and institutional reforms responsible?," Structural Change and Economic Dynamics, Elsevier, vol. 61(C), pages 265-277.
    15. Arakpogun, Emmanuel Ogiemwonyi & Elsahn, Ziad & Nyuur, Richard B. & Olan, Femi, 2020. "Threading the needle of the digital divide in Africa: The barriers and mitigations of infrastructure sharing," Technological Forecasting and Social Change, Elsevier, vol. 161(C).
    16. Karishma Banga, 2019. "Digital technologies and 'value' capture in global value chains: Empirical evidence from Indian manufacturing firms," WIDER Working Paper Series wp-2019-43, World Institute for Development Economic Research (UNU-WIDER).
    17. Gómez-Barroso, José Luis & Marbán-Flores, Raquel, 2020. "Telecommunications and economic development – The 21st century: Making the evidence stronger," Telecommunications Policy, Elsevier, vol. 44(2).
    18. Awad, Atif & Albaity, Mohamed, 2022. "ICT and economic growth in Sub-Saharan Africa: Transmission channels and effects," Telecommunications Policy, Elsevier, vol. 46(8).

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