Browsing by Author "Sikazwe, Bright C."

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    The relationship between digitalisation data and GDP
    (University of the Witswatersrand, Johannesburg, 2023) Sikazwe, Bright C.; Sithibe, Tebogo
    This academic paper examines the relationship between digitalisation and Gross Domestic Product (GDP) in Sub-Saharan Africa (SSA). The study aimed to address the limited understanding of the impact of digitalisation on the economic growth and development of SSA countries. Existing literature, as explored in the background, underscores the positive impact of digitalisation on economic growth, particularly emphasizing the role of Information Communications Technology (ICT) (Solomon & Klyton, 2020; Paul, 2021). However, a noticeable gap persists, as there is limited empirical research investigating the specific relationship between digitalisation and GDP in the context of SSA. By employing a quantitative research methodology, the study investigates the relationships between Internet usage, mobile phone usage, manufacturing value add, and GDP. The analysis utilises time series data from 1998 to 2020, obtained from the World Bank database, covering 10 countries, and resulting in 220 time series data points. It employed several statistical techniques such as time series regression, ARIMA, VAR, and exponential smoothing. It also used correlation andtrend analysis, Pooled OLS, and cluster analysis to try and further understand the relationship. The results show that in Sub-Saharan African (SSA) countries, there are slight positive connections between Internet usage, mobile phone usage, and GDP. Yet, it's important to note that the study recognizes limitations related to available data and time constraints, as highlighted in the literature (Tong & Wohlmuth, 2019). This emphasizes the necessity for more research to confirm and reproduce these findings. Moreover, a robust positive link is found between manufacturing value addition and GDP. Interestingly, when manufacturing value addition is considered as a control factor, the link between digitalisation and GDP becomes less strong. This implies that a portion of the positive impact of digitalisation on GDP is linked to the increased value addition in manufacturing. The study contributes to existing literature by providing insights into the relationships between digitalisation and GDP in SSA while controlling for Manufacturing value Add. It emphasizes the importance of considering country- specific factors and contextual nuances in future research. Policymakers are recommended to focus on promoting investment in the manufacturing sector, increasing access to mobile phones and the internet, fostering innovation and entrepreneurship, investing in digital infrastructure, providing digital skills training, and fostering public-private partnerships to promote sustainable economicdevelopment in SSA. Further research is needed to validate these findings, explore the mechanisms through which Internet and mobile phone usage impact GDP, and understand the role of manufacturing value Add in driving economic growth. This deeper understanding will enable policymakers to make informed decisions to foster digitalisation, enhance mobile phone usage, and promote manufacturing value add for sustainable economic development in SSA and other developing African nation