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Digitalization and economic growth: A comparative analysis of Sub-Saharan Africa and OECD economies

Godwin Myovella, Mehmet Karacuka () and Justus Haucap ()

Telecommunications Policy, 2020, vol. 44, issue 2

Abstract: This paper examines the contribution of digitalization to economic growth of Sub Saharan Africa (SSA) in comparison with the Organization for Economic Cooperation and Development (OECD) economies. The main reason for comparing the most and the least developed countries to measure the effects of digitalization is to have an insight of whether such effects depend on the levels of development of the country. New technologies in Sub Saharan Africa are assumed to have played significant roles in economic activity, including accessibility of communications, which was impeded by poor infrastructure, accommodation of the poor majority who were initially financially excluded from mobile banking and participation of small and medium enterprises (SMEs) in e-commerce. On the other hand, due to the effects of digitalization, least developed countries in SSA have been facing a premature deindustrialization.

Keywords: Digitalization; Economic growth; Sub Saharan Africa; Generalized methods of moments (search for similar items in EconPapers)
Date: 2020
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DOI: 10.1016/j.telpol.2019.101856

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