Fourth industrial revolution technologies and income inequality in sub-Saharan Africa (SSA): the role of institutions, financial and human capital development

Dorcas Gonese and Nicholas N. Ngepah

Journal of Internet and Digital Economics, 2026, vol. 6, issue 1, 1-26

Abstract: PurposeThis study is underpinned by the conviction that the Fourth Industrial Revolution (4IR)'s transformative potential will only be fully realised when its benefits are extended universally across all regions. This paper examines the impact of the 4IR technologies on income disparity in 40 sub-Saharan African (SSA) economies. Again, the study assesses the moderating effects of institutional quality, human capital and financial growth on the 4IR-inequality relationship.Design/methodology/approachTo address the specified objectives, the paper utilises panel data from 2000 to 2021 and applies the system generalised method of moments (SGMM) as the estimation method.FindingsThe study shows that the 4IR technology indicators had varying effects on income inequality in sub-Saharan African countries. Again, the paper's observed results reveal that human capital, institutional quality and financial development are critical to SSA's income inequality–4IR nexus. Consequently, it is worthwhile to articulate that the 4IR's effectiveness is built on significant nexuses with complementary factors to minimise income disparities in SSA.Originality/valueThis paper examines the impact of Fourth Industrial Revolution technologies on income inequality in sub-Saharan Africa, taking into account the moderating effects of development factors, including financial development and human capital. This offers a new lens for understanding how regional-specific factors can either amplify or mitigate the distributional effects of technological change. Moreover, the findings of this analysis yield a foundational, policy-oriented framework that can be applied to stimulate inclusive economic growth in sub-Saharan Africa.

Keywords: Fourth industrial revolution; Income inequality; Principal component analysis (PCA); Interaction terms; System GMM; sub-Saharan Africa (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:eme:jidepp:jide-07-2024-0032

DOI: 10.1108/JIDE-07-2024-0032

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