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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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    3. 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).
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    9. Schoentgen, Aude & Gille, Laurent, 2017. "Valuation of telecom investments in sub-Saharan Africa," Telecommunications Policy, Elsevier, vol. 41(7), pages 537-554.
    10. 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.
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    13. Dhahri, Sabrine & Omri, Anis & Mirza, Nawazish, 2024. "Information technology and financial development for achieving sustainable development goals," Research in International Business and Finance, Elsevier, vol. 67(PA).
    14. Matthess, Marcel & Kunkel, Stefanie, 2020. "Structural change and digitalization in developing countries: Conceptually linking the two transformations," Technology in Society, Elsevier, vol. 63(C).
    15. 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).
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    17. 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).
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