ICT development and economic growth: Are southeast African countries doing enough to leverage on ICT?

Abstract

ICT is fast growing across continents and has brought about aspects of economic growth within countries, particularly developed countries. Over the years, productivity has noticeably increased with businesses and governments having easy access to global markets, hence improved trade openness. In this study, we analyze the state of ICT in Southeast African countries to understand whether ICT has been underutilized or to whether they are leveraging the use of it. From literature, Solow (1956) and Swan (1956) have argued that absence of technology innovation leads to economic stagnation that leads to high unemployment. In this study, we analyze ICT and its impact on unemployment as well as human capital in Southeast Africa. Also, the study analyzes consumption expenditure, trade and inflation and their relationship with ICT while alluding that they could be potential growth enhancing factors ofiCT. The study proposes to use a two-step system generalized method of moments (GMM) estimation technique while drawing its theoretical underpinnings from the neo-classical growth model.