The Impact of Government Digitalisation on Economic Growth: Cross-Country Panel Data Evidence from Sub-Saharan Africa

Journal of Finance and Business Studies

ISSN : 3057-3076

Mr. Manyama, J. (Institute of Rural Development Planning)

Aticle Publication Date : 25-08-2026


Abstract

This study investigates the impact of government digitalisation on economic growth in Sub Saharan African countries. Although government digitalisation is generally considered to promote economic growth, the specific effects of its three components, e government development, online public services, and telecommunication infrastructure, remain insufficiently explored. The analysis covers 35 Sub Saharan African countries over the period from 2008 to 2024, observed at two-year intervals. Methodologically, the study employs a Fixed Effects model with Driscoll Kraay standard errors, complemented by a dynamic GMM model for robustness checks and a Granger causality test to address potential two-way relationships. To ensure the reliability of the findings, a range of preliminary and diagnostic tests were conducted, including descriptive statistics, correlation analysis, and tests for multicollinearity, heteroskedasticity, serial correlation, and cross-sectional dependence. The results show that e government development has a positive and statistically significant effect on economic growth. In contrast, online public services and telecommunication infrastructure are found to have negative and significant effects. These adverse outcomes are attributed to structural and institutional challenges, such as limited digital capacity, high costs, and unequal access, which hinder the effective use of digital systems. Overall, the study provides clear evidence that while government digitalisation can support economic growth, its benefits in Sub Saharan Africa depend heavily on the presence of supportive institutional and structural conditions.

Keywords

Government digitalisation economic growth e-government development index online public service index telecommunication infrastructure

Citation

Manyama, J. (2026), " The Impact of Government Digitalisation on Economic Growth: Cross-Country Panel Data Evidence from Sub-Saharan Africa", Journal of Finance and Business Studies, Volume 2 Issue 1 , 3057-3076.
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