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The impact of digital technology usage on economic growth in Africa

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  • Solomon, Edna Maeyen
  • van Klyton, Aaron

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.

Suggested Citation

  • Solomon, Edna Maeyen & van Klyton, Aaron, 2020. "The impact of digital technology usage on economic growth in Africa," Greenwich Papers in Political Economy 29537, University of Greenwich, Greenwich Political Economy Research Centre.
    • Handle: RePEc:gpe:wpaper:29537
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    File URL: http://gala.gre.ac.uk/id/eprint/29537/9/29537%20SOLOMON_Impact_Of_Digital_Technology_Usage_On_Economic_Growth_In_Africa_%28AAM%29_2020.pdf
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    Cited by:

    1. Ayesha Afzal & Saba Fazal Firdousi & Ayma Waqar & Minahil Awais, 2022. "The Influence of Internet Penetration on Poverty and Income Inequality," SAGE Open, , vol. 12(3), pages 21582440221, August.
    2. Min Zhong & Zengtao Wang & Xing Ge, 2022. "Does Cross-Border E-Commerce Promote Economic Growth? Empirical Research on China’s Pilot Zones," Sustainability, MDPI, vol. 14(17), pages 1-18, September.
    3. Rudra P. Pradhan & Sahar Bahmani & Rebecca Abraham & John H. Hall, 2023. "Insurance Market and Economic Growth in an Information-Driven Economy: Evidence from a Panel of High- and Middle-Income Countries?," Asia-Pacific Financial Markets, Springer;Japanese Association of Financial Economics and Engineering, vol. 30(3), pages 587-620, September.
    4. Ng Thanh Mai & Le Thanh Ha & Tr?n Thi Mai Hoa & Nguyen Thi Thanh Huyen, 2022. "Effects of Digitalization on Natural Resource Use in European Countries: Does Economic Complexity Matter?," International Journal of Energy Economics and Policy, Econjournals, vol. 12(3), pages 77-92, May.
    5. Beatrice Asenso Barnieh & Li Jia & Massimo Menenti & Jie Zhou & Yelong Zeng, 2020. "Mapping Land Use Land Cover Transitions at Different Spatiotemporal Scales in West Africa," Sustainability, MDPI, vol. 12(20), pages 1-52, October.
    6. Georgeta Soava & Anca Mehedintu & Mihaela Sterpu, 2022. "Analysis and Forecast of the Use of E-Commerce in Enterprises of the European Union States," Sustainability, MDPI, vol. 14(14), pages 1-29, July.
    7. Frederick Forkuo Yeboah, 2022. "The Impact of Capital Budgeting on Economic Growth in Ghana," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 6(12), pages 30-37, December.
    8. Ullah, Atta & Pinglu, Chen & Ullah, Saif & Qaisar, Zahid Hussain & Qian, Ningyu, 2022. "The dynamic nexus of E-Government, and sustainable development: Moderating role of multi-dimensional regional integration index in Belt and Road partner countries," Technology in Society, Elsevier, vol. 68(C).
    9. MUGABE Roger & Liu Shulin & Byringiro Enock, 2021. "The Impact of ICT Investment and Diffusion on Economic Growth: Empirical Evidence from Rwanda," International Journal of Innovation and Economic Development, Inovatus Services Ltd., vol. 7(4), pages 23-36, October.
    10. Faith Samkange & Haywantee Ramkissoon & Juliet Chipumuro & Henry Wanyama & Gaurav Chawla, 2021. "Innovative and Sustainable Food Production and Food Consumption Entrepreneurship: A Conceptual Recipe for Delivering Development Success in South Africa," Sustainability, MDPI, vol. 13(19), pages 1-20, October.
    11. Jiaxin Wang, 2022. "Did China’s “National Sustainable Development Plan of Resource-Based Cities” Promote Economic Growth?," Sustainability, MDPI, vol. 14(13), pages 1-17, July.
    12. Mugabe Roger & Liu Shulin & Brima Sesay, 2022. "ICT Development, Innovation Diffusion and Sustainable Growth in Sub-Saharan Africa," SAGE Open, , vol. 12(4), pages 21582440221, October.
    13. Ze, Fu & Yu, Wence & Ali, Anis & Hishan, Sanil S. & Muda, Iskandar & Khudoykulov, Khurshid, 2023. "Influence of natural resources, ICT, and financial globalization on economic growth: Evidence from G10 countries," Resources Policy, Elsevier, vol. 81(C).
    14. John Demuyakor, 2021. "Ghana’s Digitization Initiatives: A Survey of Citizens Perceptions on the Benefits and Challenges to the Utilization of Digital Governance Services," International Journal of Publication and Social Studies, Asian Economic and Social Society, vol. 6(1), pages 42-55, June.
    15. Khan Muhammad Asif, 2022. "Universities’ Involvement in Promoting Digital Entrepreneurship and Future Digital Entrepreneurship Opportunities through Digital Technologies in Indonesia," Journal of Intercultural Management, Sciendo, vol. 14(4), pages 39-59, December.
    16. Li, Na & Jin, Yanling & Li, Ying & Ma, Xinyuan, 2023. "How can visual communications aid in renewable energy development?," Renewable Energy, Elsevier, vol. 208(C), pages 702-708.
    17. 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.
    18. Shuaitao Jiao & Qiubi Sun, 2021. "Digital Economic Development and Its Impact on Econimic Growth in China: Research Based on the Prespective of Sustainability," Sustainability, MDPI, vol. 13(18), pages 1-19, September.
    19. Yusef Ali Yusef Yakubi & Basuki Basuki & Rudi Purwono & Indrianawati Usman, 2022. "The Impact of Digital Technology and Business Regulations on Financial Inclusion and Socio-Economic Development in Low-Income Countries," SAGE Open, , vol. 12(3), pages 21582440221, August.
    20. Renukappa, Suresh & Kamunda, Andrew & Suresh, Subashini, 2021. "Impact of COVID-19 on water sector projects and practices," Utilities Policy, Elsevier, vol. 70(C).
    21. Stéphane Mbiankeu Nguea & Hervé Kaffo Fotio & Louise Angèle Baida, 2022. "Investigating the effects of globalization on economic sophistication in selected African countries," African Development Review, African Development Bank, vol. 34(3), pages 324-338, September.

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