Governance for structural transformation in Africa: Information technology thresholds

Abstract

This study examines the relevance of information technology in the effect of governance dynamics on structural transformation in Africa. The study focuses on 41 countries in the continent using data for the period 2004 to 2021, and the adopted empirical strategy is the interactive generalized method of moments (GMM). The methodology is tailored to assess how four information and communication technology (ICT) dynamics (i.e., fixed telephone penetration, mobile phone penetration, internet penetration, and fixed broadband subscriptions) moderate ten bundled and unbundled governance dynamics to boost structural transformation. The findings are contingent on ICT and governance dynamics. The study highlights the negative net effects of governance dynamics on structural transformation, as well as the corresponding ICT thresholds that are essential to completely dampen the underlying negative net effects of governance dynamics on structural transformation. The provided ICT policy thresholds are within the statistical range and are thus worthwhile for policy-makers. Policy implications are discussed.