Digital Connectivity in sub-Saharan Africa: A Comparative Perspective

C. Emre Alper and Michal Miktus

No 2019/210, IMF Working Papers from International Monetary Fund

Abstract: Higher digital connectivity is expected to bring opportunities to leapfrog development in sub-Saharan Africa (SSA). Experience within the region demonstrates that if there is an adequate digital infrastructure and a supportive business environment, new forms of business spring up and create jobs for the educated as well as the less educated. The paper first confirms the global digital divide through the unsupervised machine learning clustering K-means algorithm. Next, it derives a composite digital connectivity index, in the spirit of De Muro-Mazziotta-Pareto, for about 190 economies. Descriptive analysis shows that majority of SSA countries lag in digital connectivity, specifically in infrastructure, internet usage, and knowledge. Finally, using fractional logit regressions we document that better business enabling and regulatory environment, financial access, and urbanization are associated with higher digital connectivity.

Keywords: WP; digital connectivity; EDAI SSA distribution; account ownership; ICT indicators database; SSA countries lag; Digitalization; unsupervised machine learning; fractional logit model; connectivity index; SSA economy; Information technology in revenue administration; Infrastructure; Machine learning; Income; Global; Sub-Saharan Africa; Africa (search for similar items in EconPapers)
Pages: 44
Date: 2019-09-27
New Economics Papers: this item is included in nep-big, nep-dev, nep-ict and nep-pay
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Citations: View citations in EconPapers (6)

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