Entrepreneurship, digitalisation and productivity Evidence from sub-Saharan African region
Date
2023-09
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Publisher
University of the Witwatersrand, Johannesburg
Abstract
Economic growth in Sub-Saharan Africa has been slow and the region has been struggling to address the mounting challenges, ranging from unemployment to poverty. While research, especially from advanced economies, suggests that entrepreneurship is regarded as a major driver of productivity growth, it is still unclear whether and how entrepreneurship promotes productivity in Sub-Saharan Africa. This paper fills the gap by examining the interconnected impact of entrepreneurship and digital infrastructure on productivity, using panel data from Sub-Saharan African countries. The econometric estimates reveal that digital infrastructure has moderating effects on the entrepreneurship—productivity nexus. Thus, these results imply that entrepreneurship does not promote productivity, except through the enabling effect of digital infrastructure. The study provides policy implications for governments and policymakers in the Sub-Saharan African countries.
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Keywords
African Governance, Digital Age, Entrepreneurship, Digital infrastructure, Productivity, Sub-Sahara, Africa, Developing countries, Digitalisation