Unlocking Digital Growth: Exploring the Nexus of Institutional Quality and Digital Technology in Sub-Saharan Africa
摘要
Digital technology propels sectors via information technologies, integrating economies and supporting sustainable development. Governments and institutions are investing in digital technologies, recognizing their role in knowledge-based growth. This study explores the relationship between institutional quality and digital technologies in Sub-Saharan Africa (SSA) using 2000–2021 data. Employing advanced analytical techniques, including a 2-step system GMM regression to address cross-sectional dependence and heterogeneity, the results reveal a significant positive impact of institutional quality on various digital indicators. Linear effects demonstrate positive associations, while non-linear analysis uncovers U-shaped and inverted U-shaped curves. Interaction results highlight the complementarity of institutional quality and foreign direct investment in enhancing digital technologies. However, the study finds no significant impact on mobile subscribers due to the combined effects of institutional quality and gross domestic savings. Emphasizing the pivotal role of quality institutions in fostering digital technology growth, the study suggests policy considerations. The findings underscore the need for policies that build digital innovation institutions, strengthen skills, and promote knowledge-intensive digital investment, improving living conditions in SSA. Furthermore, the study outlines research avenues on digital technologies, foreign direct investment, and gross domestic savings within the broader context of institutional quality and knowledge-based development.