Technology adoption and growth in sub-Saharan African countries

This study analyzes the relationship between information and communication technologies (ICTs) and labor productivity growth in sub-Saharan Africa over the period 1975-2010. The results show that fixed-line and mobile telecommunications have a positive and significant impact on growth after penetration rates reach a certain critical mass. The thresholds are identified using nonparametric methods. Penetrations rates of between 20% and 30% for telephones and 5% for internet usage trigger increasing returns. FDI and openness are found to improve productivity and to help ICTs boost growth. Financial development serves as a possible transmission channel for the growth-enhancing effects of ICTs.