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Repositioning for Increased Digital Dividends: Internet Usage and Economic Well-being in Sub-Saharan Africa

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  • O. Evans

Abstract

Until recently, the shortage of rigorous empirical studies has been attributed as the main cause of inadequate policy guidance in enhancing information and communications technology (ICT) and the largely underdeveloped ICT in Sub-Saharan Africa (SSA). While recently there is an increasing number of national initiatives to enhance broadband infrastructure in SSA, there is also a need for evidence-based decision-making with respect to the relationship between internet usage and economic well-being in Africa to reposition the continent for increased digital dividends. This study, therefore, examines the effect of internet usage on economic well-being for 45 SSA countries for the period 1995–2015 using panel fully modified least square (FMOLS) and panel dynamic ordinary least square (DOLS), and within a panel causality analysis. The panel FMOLS and panel DOLS analyses show that internet usage has a significant and positive effect on economic well-being. The panel causality analysis shows that there is bi-directional causality between internet usage and economic well-being in the short and long run, meaning that internet usage plays significant roles in increasing economic well-being, and economic well-being also plays significant roles in the expansion of internet usage both in the short and long run. Interestingly, the study shows that internet scams have a significant and negative effect on economic well-being, meaning that growing internet scams lead to lower economic well-being in SSA.

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  • O. Evans, 2019. "Repositioning for Increased Digital Dividends: Internet Usage and Economic Well-being in Sub-Saharan Africa," Journal of Global Information Technology Management, Taylor & Francis Journals, vol. 22(1), pages 47-70, January.
    • Handle: RePEc:taf:ugitxx:v:22:y:2019:i:1:p:47-70
    DOI: 10.1080/1097198X.2019.1567218
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    Cited by:

    1. Rahman, Muhammad Sabbir & Bag, Surajit & Gupta, Shivam & Sivarajah, Uthayasankar, 2023. "Technology readiness of B2B firms and AI-based customer relationship management capability for enhancing social sustainability performance," Journal of Business Research, Elsevier, vol. 156(C).
    2. Asongu, Simplice & Odhiambo, Nicholas, 2022. "Foreign Direct Investment, Information Technology and Total Factor Productivity Dynamics in Sub-Saharan Africa," MPRA Paper 119065, University Library of Munich, Germany.
    3. Hermann Ndoya & Simplice A. Asongu, 2022. "Digital divide, globalization and income inequality in sub-Saharan African countries: analysing cross-country heterogeneity," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 20(1), pages 1-19, October.
    4. Adams, Samuel & Akobeng, Eric, 2021. "ICT, governance and inequality in Africa," Telecommunications Policy, Elsevier, vol. 45(10).
    5. Solomon, Edna Maeyen & van Klyton, Aaron, 2020. "The impact of digital technology usage on economic growth in Africa," Utilities Policy, Elsevier, vol. 67(C).
    6. Xie, Chengyuan & Jin, Xiaotong, 2023. "The role of digitalization, sustainable environment, natural resources and political globalization towards economic well-being in China, Japan and South Korea," Resources Policy, Elsevier, vol. 83(C).
    7. Evans, Olaniyi, 2018. "Digital Agriculture: Mobile Phones, Internet & Agricultural Development in Africa," MPRA Paper 90359, University Library of Munich, Germany.
    8. Evans, Olaniyi, 2018. "Blockchain Technology and the Financial Market: An Empirical Analysis," MPRA Paper 99212, University Library of Munich, Germany.

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