Effects of the digital economy on economic growth in Africa: the role of human capital

This paper aims to analyze the effect of the interaction between the digital economy and human capital on economic growth in Africa. Using data covering the period 2000 to 2021, we use general method moment system estimation techniques for our analysis. The estimation results show that there is a U-shaped complementarity effect between the digital economy and human capital on economic growth. In general, African countries need to reach at least a human capital index threshold for the digital economy to start having a positive effect on economic growth through the human capital channel. Similarly, at least one digital economy threshold must be reached for human capital to begin to have a favorable effect on economic growth through the digital economy channel. Therefore, African countries must further develop digital infrastructure and train human capital in the creation and proper use of new technologies for inclusive growth.