ICT Adoption and Economic Growth Nexus: Evidence from Leading African Economies

Abstract

This paper examines the impact of information and communication technology (ICT) on output growth in Nigeria, South Africa, Egypt, Algeria, Morocco, Libya, Sudan, Kenya, and Ghana. We use annual data on GDP (PPP) to proxy economic growth whilst internet users, mobile phone users, telephone users, personal computers users, and school enrolment (tertiary) covering from 1990 – 2013 were used to proxy ICT. The data were analysed in a dynamic panel environment using the 2SLS method. The robustness of the 2SLS result was confirmed by the GMM regression. The results imply a positive relationship between ICT and economic growth in accord with earlier studies. Few of the earlier studies investigate the causality aspect of the relationship and the few that did use ICT directly without resolving it into its sub-variables as done in this study. The Granger causality test results indicate that only fixed wireless communication system Granger cause GDPPPP out of the five predictors suggesting that the other ICT predictors merely associate with GDP not necessarily Granger cause it as most of the earlier studies erroneously suggest. The policy implication is that the affected countries should give policy priority to development of ICT infrastructure with specific emphasis on the fixed wireless communication system as precursors for ensuring sustainable growth in the medium and long - term.

Investigating the Role of Information and Communication Technologies, Economic Growth, and Foreign Direct Investment in the Mitigation of Ecological Damages for Achieving Sustainable Development Goals

“…The empirical evidence confirmed the causalities discover from ICT development to GDP growth and non-ICT products to GDP growth. Moreover, Binuyo (2015) found similar results and confirmed the positive impact of ICT development on GDP growth in the long run.…”

ICT, Financial Development, Economic Growth and Electricity Consumption: New Evidence from Malaysia

“…Jehangir, Dominic, Naseebullah, and Khna (2011) documented that the adoption of new technology and rapidly growing internet users and online spending has a positive impact on E-commerce which spurs economic development. In the case of African countries, Binuyo and Aregbeshola (2015) probed the relationship between ICT adoption and economic growth by applying GMM regression. They found that ICT adoption accelerates economic activity and increases economic growth.…”

Impact of Information and Communication Technology on Public Sector Productivity Growth in Nigeria

“…Obadan and Odusola, (2000), noted that the long-term productivity growth rates for Nigeria were disappointing as it recorded low average growth rate of -0.17 percent between 1974 and 1996. This low 3 https://databank.worldbank.org/reports.aspx?source=World-Development-Indicators# Accessed 11 th February, 2021 4 In forty (40) out of eighty (80) countries for which data was available, less than half the population possesses basic computer skills such as copying a file or sending an e-mail with an attachment (ITU, 2019) productivity growth rate could even be worse if the private sector is excluded from it. The reasons for the low productivity growth were tie to low level of manpower training in both private and public sectors in Nigeria (Obadan and Odusola, 2000).…”

“…However, an important impediment to productivity growth and ICT sector's development in Nigeria is lack of ICT skills and weak ICT infrastructural facilities in the public sector. 4 Inadequate ICT skills and the frequent power outages experienced in Nigeria has limited innovation and the effective use of ICT for maximum productivity and growth in the Public Sector. Adeoti, (2020) argued that the Government has contributed to Nigeria's current state of innovation deficits through deficient policies and lack of commitment to building a knowledge-based and innovation-driven economy.…”