Digitization and inclusive growth: Comparative evidence from Africa, Asia, and Europe

While developed nations benefit from advanced digital infrastructure, many middle and low-income countries lag in ICT adoption. This study examines how digitization impacts inclusive growth measured by youth unemployment, poverty, and income inequality across Africa, Asia, and Europe. Africa represents lagging ICT adoption, Asia reflects intermediate development, and Europe captures advanced digital economies. Using panel data from 2000 to 2023, the study analyses three ICT indicators specifically mobile cellular subscriptions, internet usage, and fixed broadband subscriptions. Findings are shown using the Driscoll-Kraay regression to address cross-sectional dependence and slope heterogeneity. In Africa, mobile subscriptions significantly reduce youth unemployment, poverty, and inequality. Internet use and broadband access significantly reduce only income inequality in Africa. In Asia and Europe, all ICT indicators consistently reduce poverty and inequality, suggesting improved digital systems. In Asia, higher internet use is associated with rising youth unemployment, indicating possible skill mismatches. In Europe, ICT has no significant impact on youth unemployment. These findings underscore the need for region-specific digital strategies. In Africa, mobile network expansion remains critical, while Asia and Europe should align digital access with labour market demands to maximise ICT's inclusive growth potential.