Theoretical and Applied Economics
No. 2 / 2026 (647), Summer
Effects of digital economy on economic growth: Evidence from low- and middle-income countries in Africa
Thomas SANKARA University, Burkina Faso
Pam ZAHONOGO
Thomas SANKARA University, Burkina Faso
Ousmane TRAORÉ
Thomas SANKARA University, Burkina Faso
Abstract. This paper aims to analyze the effects of the digital economy on economic growth in low- and middle-income countries in Africa. We use a sample of 52 countries, comprising 21 low-income countries (LICs) and 31 middle-income countries (MICs), over the period 2004–2022. The two-stage generalized method of moments (GMM) estimation technique, corrected to finite sample bias of Windmeijer's (2005), is applied to a panel model. The main results show that the digital economy has a more positive influence on economic growth in LICs than in MICs. This supports the argument that these countries are "leapfrogging" in terms of growth thanks to digitization. Otherwise, our results highlight that "Internet access" remains the dimension of the digital economy with the greatest impact on economic growth in both types of countries. Governments in African countries may invest in digital infrastructure and support to increase internet access.
Contents
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