Digital technology and macroeconomic performance in Sub-Saharan Africa

Purpose This study examines how digital technology affects the macroeconomic performance of SSA countries. Specifically, it examines the impact of digital technology on inflation and economic growth in SSA countries. Design/methodology/approach This study uses the system GMM on a dataset spanning from 2000 to 2021 for 37 SSA countries. To measure digital technology, the study used an index generated from three components: fixed cellular subscription, individual internet usage and mobile cellular subscription. Findings The findings from the results indicated that digital technology has a linear relationship with inflation, and its effect on inflation is negative both in the short and long run. For economic growth, the results indicated that digital technology effect is initially negative, attains a minimum and begins to rise as digital technology use gets to 54% per 100 people. Originality/value To the best of our knowledge, no empirical work has been extensively done in Sub-Saharan Africa to examine the impact of digital technology on macroeconomic performance. This paper explains how digital technology affects key macroeconomic variables such as inflation and economic growth in SSA countries. On economic growth, the findings from this study are in conformity with those of East Africa, with the sole differences arising from the rate at which digital technology facilitates economic growth.