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Technology Adoption and Growth in sub-Saharan African Countries

Evelyn Wamboye, Kiril Tochkov and Bruno S Sergi ()
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Bruno S Sergi: 1] Harvard University, Cambridge, MA 02138, USA. University of Messina, Via T. Cannizzaro, 278, Messina, 98122, Italy.

Comparative Economic Studies, 2015, vol. 57, issue 1, 136-167

Abstract: This study analyzes the relationship between information and communication technologies (ICTs) and labor productivity growth in sub-Saharan Africa over the period 1975–2010. The results show that fixed-line and mobile telecommunications have a positive and significant impact on growth after penetration rates reach a certain critical mass. The thresholds are identified using nonparametric methods. Penetrations rates of between 20% and 30% for telephones and 5% for internet usage trigger increasing returns. FDI and openness are found to improve productivity and to help ICTs boost growth. Financial development serves as a possible transmission channel for the growth-enhancing effects of ICTs.

Date: 2015
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