article · Journal of Economic Structures
An examination of 37 sub-Saharan African countries between 2000 and 2019 evaluated how various information and communications technology indicators and financial development affect economic diversification. The study assessed fixed broadband, fixed-line telephones, technology goods imports, internet usage, mobile subscriptions, secure internet servers, and domestic credit provided to the private sector. The findings reveal that fixed-line telephone access and the importation of technology goods significantly decreased economic diversification. Meanwhile, internet usage, mobile connectivity, fixed broadband, and secure internet servers showed no significant effect on diversification outcomes. Financial development also failed to demonstrate a significant influence on diversifying these economies. The findings suggest that governments should focus on providing adequate, quality infrastructure while expanding access to communication technologies across the region.
Economic diversification helps developing nations build resilience against market shocks and resource dependencies. Understanding that technological tools and private credit do not automatically broaden an economy highlights the need for targeted policies. This informs policymakers and development agencies seeking to invest in digital infrastructure that genuinely supports sustainable economic transformation.
The abstract does not indicate an application pathway, as it provides macroeconomic policy research rather than a commercial product or technical service.
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Abstract This study based on a panel of 37 sub-Saharan Africa countries over the period of 2000–2019 explores the effect of a number of Information and Communications Technology variables namely fixed broad band, fixed line telephone, Information and Communications Technology good imports, internet, mobile, and secure internet servers, and financial development measured by private sector domestic credit to GDP on economic diversification as measured by a computed Herfindahl–Hirschman Index of economic diversification. Model estimation was performed using pooled ordinary least squares regression, panel data fixed effects regression, and generalized method of moments regression. The results from findings indicated that the Information and Communications Technology variables: fixed-line telephone, and ICT imports significantly reduced economic diversification, while internet and mobile were, respectively, insignificant for boosting economic diversification, and fixed broadband and secure internet servers were insignificant in adversely affecting economic diversification. As regards financial development, it was insignificant in boosting economic diversification of sub-Saharan Africa countries. The study recommended amongst others that individuals in sub-Saharan Africa countries should have improved access to Information and Communications Technology infrastructure and governments should ensure adequate provision of quality Information and Communications Technology infrastructure.
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DOI: 10.1186/s40008-023-00299-7
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