Effects of Digital Technology on Economic Growth of Selected Sub-Saharan African Countries Evidence from Dynamic Panel Data Analysis

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Elfenesh Muleta Beyene
Amsalu Bedemo Beyene
Atnafu Gebremeskel Sore


The purpose of this study is to investigate the influence of digital technology on the economic growth of Sub-Saharan African countries, utilizing data from 33 sample countries between 2010 and 2020. A two-step system GMM (Generalized Method of Moments) model was employed for data analysis, considering various factors including investment levels, inflation rates, government expenditures, unemployment, foreign direct investment, and the influence of digital technology on economic growth. Short-term analysis reveals a significant positive correlation between digital technology and economic growth. Additionally, investment levels, inflation rates, and government consumption expenditures were found to positively predict short-term economic growth, while unemployment and foreign direct investment had adverse effects. Long-run model analyses also confirm the substantial positive influence of digital technology on economic growth in the region. The study underscores the necessity for investments in developing digital technology alongside clear policy frameworks. It suggests that augmenting human capital and infrastructure development will further amplify the positive effects of digital technology on economic growth in Sub-Saharan Africa. The findings highlight the pivotal role of digital technology in fostering economic growth in Sub-Saharan Africa, emphasizing the importance of strategic investments and policy initiatives to harness its potential.

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Author Biographies

Elfenesh Muleta Beyene, Wallaga University

PhD candidate in Economics, Department of Economics, College of Business and Economics

Amsalu Bedemo Beyene, Ethiopian Civil Service University

School of Policy Studies

Atnafu Gebremeskel Sore, Addis Ababa University

College of Business and Economics