The Impact of ICT Innovation on the Economic Performance of sub-Saharan African Countries
Abstract
This study examines the impact of ICT innovation on the economic performance of 48 sub-Saharan
African countries. The study used fixed and random effect models to estimate the impact of ICT
innovation on economic performance using panel data from 2000 to 2020 while controlling for the
labor force, inflation rate, and foreign direct investment. The findings show that ICT innovations
(i.e., telephone subscriptions, and internet users) have a positive and statistically significant
impact on the economic performance of the sub-Sahara African countries. This shows that an
increase in ICT innovation raises economic performance. Moreover, the findings show that the
coefficient measuring the impact of ICT innovation as measured by internet users and telephone
subscriptions on economic performance is positive. Furthermore, the study reveals that the labour
force participation rate has a positive and statistically significant impact on the performance of
the sub-Saharan African economy while inflation has an adverse effect. This study concludes that
ICT innovation influences the performance of sub-Saharan African countries. It also recommends that sub-Saharan African countries provide priority to ICT innovation techniques and their related olicies to guarantee the availability of digital tools to support internet use and phone subscriptions, increase investment in ICT innovations, labour force participation rate, reduced
inflation rate, increase FDIs, and enhance users' ICT skills.