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Information technology, real sector and economic growth in sub-Saharan Africa: a cross-sectional dependence approach

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Abstract

This study examines the moderating role of real sector output in information technology-economic growth nexus in twenty-six sub-Saharan countries, for the period from 2000 to 2019. Three variables are used to proxy the real sector namely; industrial value-added, agriculture value-added, and total factor productivity; while information technology is proxy using a mobile phone, fixed telephone, and internet penetration. Furthermore, pooled ordinary least squares/weighted least squares, fixed-effects (within), and generalized least squares within Driscoll-Kraay standard error are used as estimation techniques to address the problem of cross-sectional dependence. The findings reveal that information technology has a mixed effect on economic growth in sub-Saharan African countries. On the interactive term of information technology and real sector output, the study found that only the interaction of agriculture value-added and information technology produces a positive effect on economic growth. The interaction of industrial value-added and information technology produces a negative effect on economic growth while the interaction of total factor productivity and information technology produces an insignificant effect on economic growth. This implies that for countries to benefit from the growth potentials of information technology, absorptive capacity such as the real sector needs to be strengthened.

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The datasets used and/or analysed during the current study are available from the corresponding author on reasonable request.

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  1. Department of Economics, Adeyemi College of Education, Ondo, Nigeria

    Taiwo Akinlo

  2. Department of Economics, Obafemi Awolowo University, Ile-Ife, Nigeria

    James Temitope Dada

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  1. Taiwo Akinlo
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T writes the introduction, theoretical Perspective and the literature review on Information Technology, Real Sector and Economic Growth in sub-Saharan Africa: A Cross-Sectional Dependence Approach. JT analysed and interpreted the results for the study. All authors read and approved the final manuscript.

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Correspondence to Taiwo Akinlo.

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Akinlo, T., Dada, J.T. Information technology, real sector and economic growth in sub-Saharan Africa: a cross-sectional dependence approach. Qual Quant 56, 4241–4267 (2022). https://doi.org/10.1007/s11135-021-01308-2

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